An artificial intelligence (AI)-powered investment platform, PortfolioPilot, has become the first nonhuman entity to be regulated by the Securities and Exchange Commission (SEC) as a registered financial adviser.

PortfolioPilot was developed by Global Predictions, a financial technology company based in San Francisco. It uses AI to help investors create and manage their portfolios.

The SEC approval means that PortfolioPilot will be subject to the same rules and regulations as human financial advisers. This includes requirements to keep client information confidential and to act in their best interests.

Global Predictions CEO Alexander Harmsen said the SEC approval was a “significant milestone” for the company and for the AI financial advisory industry. He said it would “pave the way for more AI-powered financial advisers to be regulated by the SEC in the future.”

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The approval of PortfolioPilot is a sign of the growing acceptance of AI in the financial services industry. Other AI-powered financial advisers are also seeking SEC approval, and it is likely that more will be approved in the coming years.

The use of AI in financial advising has the potential to revolutionize the industry. AI advisers can access and process vast amounts of data much faster than human advisers, and they can make recommendations that are more personalized and tailored to each individual investor’s needs.

However, there are also concerns about the use of AI in financial advising. Many worry that AI advisers could be biased or could make mistakes that might harm investors. It is important that AI advisers are carefully regulated to ensure they are used in a safe and responsible way.

The SEC approval of PortfolioPilot is a landmark step forward for the AI financial advisory industry. It shows that the SEC is willing to regulate AI advisers, and it paves the way for more AI advisers to be approved in the future. This could have a major impact on the financial services industry, and it could make it easier for investors to get the advice they need to make informed financial decisions.