ARTICLE
23 July 2026

Compliance Insights For Broker-Dealers In The Age Of AI

DM
Duane Morris LLP

Contributor

Duane Morris LLP, a law firm with more than 900 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today's legal and business challenges.
As generative AI becomes deeply embedded in broker-dealer operations, from client-facing digital assistants to internal trading and accounting systems, firms face critical compliance uncertainties. With major financial institutions rapidly deploying AI agents while regulatory frameworks lag behind, broker-dealers must navigate uncharted territory around record retention, customer data obligations, and policy development without clear guidance.
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For most broker-dealers, generative AI continues to become more deeply integrated into day-to-day workflows.

On July 13, 2026, Reuters reported that Morgan Stanley will test digital assistants later this summer that will interact with wealth management clients at all hours of the day. The bank already uses AI agents internally to support its financial advisors.

This follows similar moves by Morgan Stanley’s competitors, such as Goldman Sachs, which announced in February its partnership with Anthropic to build agents for trading, transaction accounting, and client onboarding. A KPMG survey conducted this past June found that 51% of banks were already piloting AI agents.

The regulatory framework is struggling to keep up with adoption at such a scale, leaving firms to confront three pressing questions by themselves: Are AI prompts and outputs records that firms should be legally required to retain? What do firms owe customers if their data were to touch a third-party AI model? And what should an AI-use policy actually say?

Read the full article on the Duane Morris Artificial Intelligence Blog.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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