# Division of Examinations FY2027 Priorities: Examination Priorities: Fiscal Year 2027 — Division of Examinations

Source: https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2027
Last updated: Oct 26, 2026

The FY2027 Examination Priorities, released October 23, 2026, rename the SEC's AI focus 'super intelligence (SI)': the Division says registrants are 'increasingly using super intelligence (SI) in core business operations and systems, including investment analysis, customer management, and code development,' and that 'threat actors are using SI to automate and accelerate cyberattacks, making those attacks more efficient and harder to detect.' Examiners will test firms' preparation for 'SI-related cyberattacks,' including 'SI-generated phishing messaging and synthetic or deepfake voice and video,' and will prioritize examining policies on monitoring SI use in fraud prevention, back-office operations, AML, Reg BI compliance, and trading functions.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [SEC](https://www.bankingnewsai.com/ai-regulation/sec) |
| Type | Report |
| Status | In force |
| Published | Oct 23, 2026 |
| Effective | Oct 23, 2026 |
| Applies to | SEC-registered investment advisers, broker-dealers, funds, transfer agents, and SCI entities, including bank-affiliated firms |
| Official text | https://www.sec.gov/files/2027-exam-priorities.pdf |

## Key points

- Replaces 'AI' with 'super intelligence (SI)' as the Division's term for the technology, the first SEC document in this tracker to do so — consistent with the terminology push in the White House's Executive Order 14434.
- Cybersecurity: examinations will focus on registrants' 'assessment and preparation for potential threats from SI-related cyberattacks,' including 'SI-generated phishing messaging and synthetic or deepfake voice and video used for social engineering.'
- Will prioritize examinations of 'policies and procedures relating to monitoring SI, including its use in fraud prevention and detection, back-office operations, compliance with AML and Reg BI obligations, and trading functions.'
- Carries forward the same three-part test for automated investment tools and trading algorithms: representations are fair and accurate; operations and controls are consistent with disclosures; algorithms produce advice consistent with investors' stated profiles.
- Regulation S-ID identity-theft prevention programs must address emerging risks 'related to SI and stolen credentials.'
- Regulation SCI examinations will look at SI alongside tokenization of securities, extended trading hours, and quantum computing as emerging trends, including SCI entities' reliance on cloud and third-party vendors.
- Notes registrants are 'increasingly incorporating super intelligence (SI) into their businesses' for research, drafting, coding, client communications, advisory and portfolio management, and compliance monitoring, and that the Division itself is 'integrat[ing] SI responsibly into examinations and risk assessment.'

## What changed for banks

This is the first SEC document in the tracker to replace 'AI' with 'super intelligence (SI)' as its working term, mirroring the terminology the White House's Executive Order 14434 asked agencies to consider. Substantively, the risk areas carry over from FY2026 — fraud, cyber, and trading-algorithm supervision — with SI-specific cyberattack and deepfake risks added. For banks and their broker-dealer or adviser affiliates, the examination focus is continuous with FY2026, but compliance programs and training should expect examiners to use 'SI' language going forward.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity)
- [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc)
- [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud)
- [Trading & capital markets](https://www.bankingnewsai.com/ai-regulation/by-use-case#trading-markets)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)

Supersedes: [Division of Examinations FY2026 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2026).

## FAQ

### Does the SEC now call AI 'super intelligence' (SI)?

Yes, in its FY2027 Examination Priorities (October 23, 2026), the Division of Examinations uses 'super intelligence (SI)' throughout instead of 'AI,' following the terminology the White House's Executive Order 14434 asked federal agencies to consider.

### What does the SEC's FY2027 exam priorities say about AI/SI risk?

Examiners will test preparation for SI-related cyberattacks, including SI-generated phishing and deepfake voice or video; review policies on monitoring SI used in fraud prevention, back-office operations, AML, Reg BI compliance, and trading; and check that automated advice and trading algorithms match investor profiles and disclosures.

## Related documents

- [Division of Examinations FY2026 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2026) — Examination Priorities: Fiscal Year 2026 — Division of Examinations (Nov 17, 2025)
- [SEC v. Cryptoaiml / TSAI Pro](https://www.bankingnewsai.com/ai-regulation/documents/sec-cryptoaiml-tsai-ai-trading-bot-fraud-2026) — SEC Charges Multiple Entities in Fraud Schemes Using Fabricated AI-Trading-Signal and AI-Trading-Bot Claims (Sep 29, 2026)
- [Atkins remarks at Investor Advisory Committee (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-iac-ai-disclosure-remarks-2026-09) — Remarks at the SEC Investor Advisory Committee Meeting on AI Technologies and the Public Markets Information Ecosystem (Sep 10, 2026)
- [SEC v. GenesisAI Corp. and Cheishvili](https://www.bankingnewsai.com/ai-regulation/documents/sec-genesisai-cheishvili-2026) — SEC Files Settled Action Against Start-Up Artificial Intelligence Company and Former CEO (Aug 26, 2026)
- [Atkins remarks at FSOC AI roundtable (Mar 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-fsoc-ai-roundtable-2026) — Remarks at Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles (Mar 4, 2026)
- [Investor Advisory Committee AI disclosure recommendation](https://www.bankingnewsai.com/ai-regulation/documents/sec-iac-ai-disclosure-recommendation-2025) — Recommendation of the SEC Investor Advisory Committee Regarding the Disclosure of Artificial Intelligence's Impact on Operations (Dec 4, 2025)
- [SEC withdrawal of proposed rules (33-11377)](https://www.bankingnewsai.com/ai-regulation/documents/sec-pda-proposal-withdrawal-33-11377) — Withdrawal of Proposed Regulatory Actions — including the predictive data analytics conflicts proposal (Jun 12, 2025)
- [SEC v. Saniger (Nate, Inc.)](https://www.bankingnewsai.com/ai-regulation/documents/sec-nate-saniger-ai-washing-2025) — SEC Charges Founder of Nate, Inc. with Fraud Over False Claims About the Company's Use of Artificial Intelligence (Apr 9, 2025)

Last reviewed Oct 26, 2026. Cite the official text (https://www.sec.gov/files/2027-exam-priorities.pdf) for the rule and this page for the summary and dates.

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