The Canadian Securities Administrators (CSA) have issued a notice regarding the use of artificial intelligence (AI) in financial services, highlighting the need for firms to navigate potential risks associated with AI. This notice comes amid increasing scrutiny from regulatory bodies, including the U.S. Securities and Exchange Commission (SEC), which has prioritized AI in its examinations, particularly concerning litigation risks related to 'AI washing'—the practice of misrepresenting AI capabilities. Additionally, the Financial Industry Regulatory Authority (FINRA) has reminded financial firms of the significant risks posed by AI usage. The Commodity Futures Trading Commission (CFTC) has also released advisory guidance to address the anticipated growth in AI applications among regulated entities. Various law firms are providing insights on the implications of AI in governance, fiduciary duties, and litigation risks, as the popularity of AI transcription services rises, raising concerns over compliance with regulations such as the Fair Credit Reporting Act.