AI Mentions in the SEC 2027 Exam Priorities

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U.S. Securities and Exchange Commission, Division of Examinations. (2026, October 23). Examination priorities: Fiscal year 2027. https://www.sec.gov/files/2027-exam-priorities.pdf

The SEC Division of Examinations states that registrants are increasingly using super intelligence (SI - their new term for "AI"), including generative SI tools for research, drafting, coding, client communications, advisory and portfolio management functions, and compliance monitoring and surveillance.
The Division says it is intensifying efforts to understand how these technologies influence outcomes and whether firms continue to comply with existing, technology-neutral obligations.
Examinations will assess how registrants are preparing for SI-related cyberattacks, such as SI-generated phishing messages and synthetic or deepfake voice and video used for social engineering.
The Division will prioritize policies and procedures for monitoring SI, including its use in fraud prevention and detection, back-office operations, AML and Regulation Best Interest compliance, and trading functions.
Under Regulation S-ID, examiners will assess whether firms are updating their Identity Theft Prevention Programs to address emerging risks such as SI and stolen credentials.
The Division plans to integrate SI into its own examinations and risk assessment through a modernization initiative, stating that the tools will supplement, but not replace, examiner judgment.
Dropped from the priorities: Validating that AI use is as claimed ("AI Washing").

Knote: Unilaterally renaming "AI" as "SI" is as puzzling as it is unhelpful. People are confused enough already.