Harnessing Super Intelligence: The SEC's Push for Accessible Financial Data and Investor Protection

Statement Summary

The recent discussion on machine-understandable data in the context of super intelligence (SI) highlighted the evolving landscape of financial information. With advancements in machine learning and generative systems, the demand for accessible and standardized data has surged, empowering investors and enhancing competition. The SEC now provides 15 public datasets, reflecting a growing recognition of the value of such data. However, while SI can improve efficiency, it does not lessen the accountability of issuers for accurate disclosures. Quality data remains crucial for technological advancements, akin to fuel for an engine. The discussion emphasized the need for continued engagement between market participants and the SEC to integrate innovative practices while safeguarding investor protection and market integrity.

Original Statement

Good afternoon, ladies and gentlemen, and thank you for joining us today for this important discussion on machine-understandable data in the age of super intelligence, or SI. Before I offer a few closing reflections, I must note that the views I express are my own as Chairman and do not necessarily reflect those of the Commission or of my fellow Commissioner.

Today, we are at the frontier of a new era for financial information and innovation. When I served as an SEC Commissioner two decades ago, many of the machine-understandable disclosures that investors and researchers now take for granted were just beginning to emerge. Financial disclosures designed primarily for people to read are increasingly processed and analyzed by machines. And advances in machine learning and, more recently, generative systems have dramatically expanded the pace and possibilities of financial analysis.

As our DERA staff discussed this morning, the Commission makes 15 data sets available to the public free of cost. In recent years, demand for these resources has grown significantly. In fact, over the past two years, use of the Financial Statement Data Set alone has multiplied more than fivefold. That growth sends a clear message: accessible, standardized data has genuine value.

Lowering the cost of obtaining and analyzing such financial information can empower investors, foster competition, and reduce barriers to entry. Importantly, better data need not mean more disclosure. Often, the greater opportunity lies in making the information that companies already disclose more accessible and useful, without imposing unnecessary burdens on issuers.

Of course, these opportunities must be pursued thoughtfully. SI offers extraordinary potential to improve efficiency and expand access to information. But it does not eliminate the responsibility of issuers to produce, verify, and defend the information that they disclose. The same technologies that can analyze information at unprecedented speed and scale can also magnify errors and missing context. To that end, accuracy and comparability, along with cybersecurity and appropriate oversight, remain essential.

Today's panelists—including technology and data providers, investors, operating companies, practitioners, and academics—offered valuable perspectives on this topic from across our markets. Their insights underscore a fundamental point: even the most sophisticated technology depends on the quality of the information that it uses.

Consider, for example, a high-performance engine. However powerful or finely engineered, it is only as good as the fuel that goes into it. And the same is true of the technologies discussed today: high-quality, well-structured, and trustworthy data is the propellant that allows them to reach their full potential. And while good data cannot eliminate every risk, poor data can undermine even the most sophisticated analytical tools and send our engine sputtering down the road.

That is why this discussion matters. It helps us better understand not only how SI is changing the way that financial information is used, but also how we can encourage innovation while remaining mindful of costs, protecting investors, and preserving market integrity.

As we consider potential next steps, I encourage market participants and other interested parties to continue engaging creatively and thoughtfully with the Commission. Your perspectives will remain invaluable as we work to ensure that our approach to data and SI reflects the practical needs of today’s markets.

In closing, I should like to express my sincere thanks to today’s panelists and moderators for sharing their time and expertise, as well as the dedicated staff of DERA's Office of Data Standards and Innovation for organizing this timely and informative roundtable. Thank you.