Navigating AI Disclosures: A Strategic Insight for Issuers
On December 4, 2025, the SEC Investor Advisory Committee recommended that issuers enhance disclosure frameworks regarding artificial intelligence. While the recommendation is non-binding, it highlights a growing expectation for transparency concerning AI-related risks.
Key Highlights:
- Focus Areas: Issuer operations, board oversight, and consumer impacts.
- Challenges: Issuers face difficulties in assessing AI-mediated representations that are probabilistic and often outside their control.
- Introducing RCTs: Reasoning Claim Tokens (RCTs) serve as a governance-oriented evidence layer, helping capture discrete claims made by AI systems without asserting their correctness.
This framework aims to bolster issuer accountability and enhance board oversight, aligning with U.S. securities law standards. RCTs are not a compliance burden but a tool for responsible governance.
Join the conversation—share your insights and thoughts on AI disclosures. Let’s shape the future of responsible technology together! #AI #Disclosure #Governance #SEC
