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Asset Managers and AI Integration: Legal and Regulatory Essentials
Fiduciary and Supervisory Obligations; Vendor Selection and Diligence; Privilege Waiver, Confidentiality, Litigation Exposure
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About the Course
Introduction
This CLE course will examine the legal risks asset managers face when deploying AI. The panelists will explain how fiduciary duties and Regulation S-P apply to AI use, how to manage AI vendor risk, and how inputs into AI tools can compromise confidentiality, waive privilege, and create litigation exposure. Attendees will learn how to build a defensible AI governance framework to support risk-conscious AI deployment.
Description
As asset managers integrate AI across their operations, regulators and litigants are paying close attention. Although the SEC has withdrawn its predictive data analytics proposal, it continues to evaluate AI use under fiduciary duty and supervisory principles. Regulation S-P adds specific obligations when client information flows through AI tools. The 2024 amendments require written oversight of service providers and incident response programs. Together, these make vendor selection, diligence, contracting, and ongoing oversight central to an asset manager's compliance posture.
Entering confidential information into AI tools can expose client data, MNPI, and IP. It can also risk privilege waiver. AI-generated call and meeting transcripts may become discoverable in civil and regulatory matters, adding to private litigation and class action exposure.
Listen as our authoritative panel examines these risks and explains how asset managers can build a defensible AI governance framework. The panel will cover policies, assessments, vendor oversight, and disclosures tailored to actual AI use.
Presented By
Ms. Betancourt is a partner in Goodwin’s Data, Privacy & Cybersecurity practice and a member of the firm’s Complex Litigation & Dispute Resolution group. Focusing her practice on cybersecurity law and compliance, and AI strategy and governance, she enables clients and businesses to overcome complex legal issues and risk related to cybersecurity and data matters. Ms. Betancourt's expertise spans cyber incident response and preparedness, cybersecurity governance and regulatory compliance, corporate transactions, and internal investigations. Her practice also includes advising companies on artificial intelligence governance and risk management. Ms. Betancourt regularly advises clients at the C-suite and board level on navigating complex cybersecurity matters and strategically approaching the responsible implementation of AI. She was selected to serve on the 2025-2026 Law 360 Cybersecurity & Privacy Editorial Board, and regularly speaks on cybersecurity and AI at conferences and in the media. Ms. Betancourt is a Founding Member of the Cyber Counsel Group, an industry group dedicated to empowering in-house cybersecurity lawyers.
Ms. Roy practices in the firm’s litigation and enforcement practice group, representing financial services firms, including investment advisers and mutual funds, and other clients in securities litigation and other complex business disputes in courts around the country. She focuses her practice on the investment management industry and has experience in litigating many of the leading issues facing the mutual fund industry, including excessive fee claims, prospectus liability and closed-end fund activism. In addition to active litigation matters, Ms. Roy regularly advises clients in federal and state government investigations. She is an industry thought leader on issues surrounding environmental, social and governance (ESG) investing practices, advising multiple clients on regulatory investigations and disclosure matters, and is also a regular speaker and commentator on ESG investing issues among other emerging issues impacting financial services firms.
Mr. Skinner represents investment advisers and other financial services firms in securities litigation and other complex business disputes. A recognized industry leader in investment management litigation, he has been at the forefront of many of the key challenges facing the mutual fund and ETF industry in recent years, including excessive fee claims, prospectus liability, closed-end fund activism and ESG investing. He obtained a U.S. Supreme Court victory for a mutual fund adviser in Jones v. Harris Associates, the seminal decision establishing the liability standard for excessive fee claims under Section 36(b) of the 1940 Act. In addition to handling active litigation matters, Mr. Skinner frequently advises investment managers and other clients in their dealings with state and federal regulators. He is a regular speaker and commentator on litigation and risk management issues facing asset managers. Mr. Skinner also has substantial experience in litigating major insurance coverage disputes on behalf of insurers, including trial and appellate victories in the 9/11 World Trade Center coverage dispute.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
Date + Time
- event
Thursday, October 22, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. Fiduciary duties and supervisory obligations when using AI
II. Regulation S-P: safeguarding client information in AI tools, including service provider oversight and incident response under the 2024 amendments
III. Vendor risk management: diligence, contract protections, and ongoing oversight of AI providers
IV. Confidentiality: client data, MNPI, and IP exposure from inputs into AI tools
V. Privilege waiver and litigation risk: AI-generated transcripts, discoverability, and private and class action exposure
VI. Building a defensible AI governance framework: policies, assessments, and disclosures tailored to actual use
The panel will review these and other key issues:
- How do fiduciary and supervisory obligations apply to asset managers' use of AI?
- What does Regulation S-P require when client information flows through AI tools and vendors?
- What diligence and contract protections should asset managers require of AI providers?
- When does AI use risk privilege waiver, confidentiality breaches, or litigation exposure?
- What are the key elements of a defensible AI governance framework?
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