Financial Firms Turn to Artificial Intelligence to Handle Compliance Overload

The SEC recently updated its Compliance and Disclosures Interpretations (C&DIs) on non-GAAP measures in response to its increasing concerns that such measures may be misleading, more prominent than comparable GAAP measures or inconsistently presented from period to period. The C&DIs do not prohibit companies from using non-GAAP measures that comply with the SEC's existing rules, however the regulator's tone in the interpretations is intentionally forceful, in an effort to "send a message."