Regulatory guidance on AI-generated content in investment research has tightened significantly in the past 12 months. The SEC's updated no-action letter framework and the FCA's guidance on AI use in regulated activity both impose documentation and disclosure obligations that many buy-side firms have not yet fully implemented.
What is required
The common thread across both regulatory frameworks is a requirement that firms be able to demonstrate that AI-generated research content was subject to meaningful human review before distribution — and that the reviewer had sufficient information to exercise genuine judgment, not just approve a black box output. This is the documentation challenge that Centaur's reasoning chain architecture is designed to address.