Artificial intelligence is reshaping how financial firms approach marketing, from personalized outreach to content creation to campaign automation. But while AI offers tremendous efficiency and creativity, it also introduces new compliance challenges … especially under the U.S. Securities and Exchange Commission’s (SEC) Marketing Rule.
For registered investment advisers and other financial professionals, the path forward isn’t avoiding AI — it’s integrating it responsibly.
Today, we’ll discuss how firms can embrace innovation while maintaining compliance.
A Recap of the SEC’s Marketing Rule
Let’s start with a quick rundown of what you need to know about the SEC’s modernized Marketing Rule, which sets standards for how advisers promote their services. Among the rule’s most relevant provisions:
- Performance claims must be fair and balanced. Firms must present performance information accurately, with clear disclosures, context and no cherry-picking of results.
- Hypothetical performance is heavily regulated. Because they can be potentially misleading, simulations and backtested data can only be shown to audiences with the expertise to evaluate them, they must be relevant to the likely financial situation and investment objectives of the advertisement’s intended audience, and they must have written policies and detailed disclosures in place.
- Testimonials and endorsements are allowed — with conditions. These must include disclosure of compensation, conflicts of interest and whether the endorser is a client.
- Substantiation requirement. Firms can only make material claims that they reasonably believe they can substantiate should the SEC request it.
These requirements apply to all forms of marketing … including content generated or assisted by AI.
AI in Financial Marketing: Benefits and Risks
AI tools can help marketing teams in a number of ways; perhaps most notably (and most familiar to casual users) is that it can generate high volumes of content across platforms.
But you can use AI to tailor messaging based on audience behavior or preferences, run performance analysis and audience segmentation, and automate workflows such as A/B testing and reporting.
However, there are significant risks if these tools are not used with care. AI can introduce inaccurate or misleading statements that could be missed in review. Misleading hypothetical results, missing appropriate context, could be included. Testimonials and third-party reviews might be repurposed without meeting compliance standards. And disclosures might be omitted, incomplete or inconsistent.
How to Use AI Without Violating the SEC Rulebook
To navigate the intersection of AI and compliance, financial firms need to adopt structured processes that support both innovation and oversight, including:
- Establishing clear internal policies. Define when and how AI can be used in marketing. For instance, you might determine that generative AI can be used in helping to generate definitional and narrative content, but that you’ll prohibit it from generating performance-related materials.
- Implement human-in-the-loop review. AI-generated content should only ever be published with human review, ideally by marketing and compliance personnel. Check for (among other things) factual accuracy, tone, disclosure placement and any language that could be interpreted as promissory or misleading.
- Use pre-approved prompts and templates. Guide AI use with compliant prompt libraries and content frameworks. This may reduce the risk that AI will produce noncompliant outputs and could improve consistency across campaigns.
- Automate disclosure insertion where possible. Set up systems or workflows that automatically include required disclaimers based on the type of content produced (particularly when performance, services or testimonials are mentioned).
- Maintain documentation and audit trails. Keep records of AI-generated content, revision histories and approval workflows. This not only aids internal accountability — it also supports regulatory inquiries if needed.
Innovate With Integrity
AI has the potential to improve marketing efficiency, personalization and scale. But in a highly regulated environment, firms can’t afford to sacrifice compliance for speed or automation. Success depends on thoughtful implementation, clear policies and active oversight.
Need help aligning your marketing strategy with compliance standards while staying ahead of the curve with AI? Mischa Communications has the expertise you need. Let’s get started.