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SEBI has issued a draft guidelines to allow market intermediaries like asset management companies and registered investment advisers to leverage artificial intelligence (AI) and machine learning (ML).
According to the proposed norms, while market intermediaries can leverage AI and ML to provide value added services, they will be responsible for investor data breach by AI and ML.
Also, the market intermediaries will have to take responsibility of output generated by such tools. In addition, such tools should comply with the SEBI regulations.
SEBI defines AI as, “The expression “Artificial Intelligence” is understood to focus on executable programmes in machines and computers that can learn, reason and act in ways that would normally require human intelligence. AI techniques are designed to learn from analysing data sets and perform on the basis of minimal or without any human assistance. AI uses ‘Machine Learning’ techniques including natural language processing (voice to text, text to systems, robo chat bots, etc), neural networks, statistical heuristics, feedback mechanism, etc, including a combination thereof to analyse large amounts of data, learning from such data and performing tasks without explicit instructions.”
You can submit your comments on these proposals by November 28, 2024 by clicking on this link.
