AI Model Validation in Regulated Financial Firms: Supervisory Expectations and Practical Considerations
March 23, 2026
In this client alert, Frank J. Weigand and Louis Capizzi examine considerations that are becoming more critical for broker-dealers and investment advisers as the use of AI continues to expand. They also consider how traditional model-validation concepts may need to evolve to accommodate the unique challenges posed by generative AI systems, which produce outputs that are not deterministic in nature.
