SEC IAC to Consider Draft Recommendation on AI Oversight and Disclosure

At a virtual public meeting scheduled for December 4, 2025, the SEC Investor Advisory Committee ("IAC") will consider a draft recommendation to the Commission on the "disclosure of artificial intelligence’s impact on operations."

The draft recommendation would: "1) require issuers to adopt a definition of the term 'Artificial Intelligence'; 2) disclose board oversight mechanisms, if any, for overseeing the deployment of AI at the company; and 3) report separately on how issuers are deploying AI and, if material, the effects of AI deployment on (a) internal business operations, and (b) consumer-facing matters."

The IAC will also host panel discussions on: "Regulatory Changes in Corporate Governance," and "Tokenization of Equities: How Issuance, Trading, and Settlement Would Work with Existing Regulation."