Artificial intelligence (AI) is poised to revolutionize many industries, and asset management is no exception. The SEC has proposed new predictive data analytics rules (PDA Rules), however, that would fundamentally change how fund managers and others use new technologies, including calling into question longstanding approaches to addressing conflicts of interest. The SEC faces a looming deadline to adopt the new PDA Rules, which means the new regulations are likely to alter the way fund managers do business long before actual AI technology does. To address the potential effects of the PDA Rules, if enacted, as well as other regulatory and legislative developments related to AI, K&L Gates hosted a webinar on AI for asset managers that featured partners Jennifer L. Klass and Cheryl L. Isaac; of counsel Matthew J. Rogers; and government affairs adviser Ryan T. Carney. This article summarizes relevant takeaways from their discussion, including some of the risks and opportunities presented by AI, and compliance best practices for managing them. See our two-part series on AI in private funds: “Emerging AI Technology and Valuable Legal- and Compliance-Related Applications” (Nov. 16, 2023); and “Challenges, Best Practices for Implementation and the Road Ahead” (Nov. 30, 2023).