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Advisory firms must choose between open and closed AI for data security and compliance.

Market News
25 Jun 2026
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Advisory firms need to understand the difference between open and closed AI before adopting these tools. Open AI uses broad public data and is suitable for general tasks but risks exposing sensitive information. Closed AI keeps data within the firm, protecting client privacy but may limit perspective and increase costs. Firms must create clear AI policies that define approved tools, data usage, and review processes to comply with existing regulations, as no specific SEC AI rules exist yet. Choosing the right AI depends on the use case, data sensitivity, and compliance needs.

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