In 2024, generative AI is revolutionizing business strategies and reshaping financial markets. The entry of generative AI has dominated the technology landscape this year, prompting businesses to adapt to the opportunities and challenges it presents. Financial institutions are beginning to develop near-and medium-term plans to deploy generative AI technology at scale. The use of algorithms and machine learning tools in the banking and lending industry is not new, but the emergence of generative AI has the potential to disrupt financial markets when combined with other groundbreaking developments such as blockchain and digital assets.
Meanwhile, the regulatory landscape for AI is rapidly evolving. Regulatory bodies around the world, including the EU, China, and the US, are working to establish new regulatory regimes for AI. The Securities and Exchange Commission (SEC) in the US is actively pursuing a technology-focused regulatory agenda, including preemptive regulation of AI, as well as stringent rules for the cryptocurrency and digital asset industry. Court decisions are also shifting the SEC’s approach towards recognizing certain digital asset products as distinct entities. As cybersecurity becomes increasingly important, government regulation in this area is expected to continue.
In 2024, generative AI and machine learning technologies will continue to play a significant role in strategic, governance, and product discussions. Financial firms and technology providers are expected to broaden their conversations to include integration with other disruptive technologies like blockchain and digital assets. Cyberattacks and the use of AI in cyberattacks show no sign of slowing down, which will require increased focus on cybersecurity and proactive measures to detect and mitigate threats.
In terms of sector matter highlights, law firm Dechert recently secured a victory in a high-stakes federal jury trial for Zillow, the most-visited real estate website in the US. Dechert also successfully defended Prisma Labs in two groundbreaking AI privacy class action cases. Microsoft turned to Dechert for help in dealing with fallout from a data breach. The firm is defending Microsoft in five class actions related to the breach.