Regulators face a dilemma in financial services: How should new technologies be suitably regulated to avoid some unforeseen catastrophe or malpractice, but not so overly regulated that innovation is smothered in the cradle? It requires a delicate balancing act, especially when emerging technologies like generative AI take hold so quickly -- they're often easily misunderstood and present immense opportunities and new threats.

In the capital markets, unfettered use of AI is not an option, as there are