United States of America: Securities and Exchange Commission Investor Advisory Committee adopted recommendation regarding disclosure of AI’s impact on operations

On 4 December 2025, the SEC Investor Advisory Committee adopted a recommendation regarding the disclosure of Artificial Intelligence (AI)’s impact on operations. Specifically, the Committee recommends that the SEC enact rules requiring securities issuers to adopt a definition of the term "Artificial Intelligence" and disclose board oversight mechanism for AI deployment. Further, the SEC should require issuers to separately report on how they are deploying AI and the effects of such deployment on both internal operations and consumer-facing matters. In coming to this conclusion, the Committee noted a number of themes, including potential cybersecurity threats posed by AI, the use of AI as a competitive tool, and the evolving regulatory framework around AI.