Fintech bots range from robo-advisors to customer service chat bots. These bots are ostensibly robots that operate in virtual space on behalf of people. Bots do things, like execute ﬁnancial transactions, or convey information, such as account balances, on behalf of people. Bots are powered by artiﬁcial intelligence and range from simple preprogrammed scripts to adaptive bots that react to new situations and respond with increasing sophistication. Roboadvisors, for example, may use algorithms to perform ﬁnancial planning services with little to no human supervision.
In an article for the May/June 2018 issue of Thomson Reuters’ FinTech Law Report, partner Huu Nguyen and Lex Sokolin, who directs fintech strategy at Autonomous Research, addressed the question of what recent US legal developments and industry standards apply to the use of fintech bots and what are the best practices for their use to minimize ﬁnancial regulatory risk.