Securities Regulation Daily Wrap Up, LAW FIRM PERSPECTIVES—Shadow AI and SEC Disclosure: What Your Public Company Needs To Know, (Oct 7, 2026)

By Sridhar Alla and Cesar Reynoso of MGO CPA LLP

Key Takeaways:

• Unauthorized use of AI inside the enterprise can become a cybersecurity, disclosure, and governance event without a traditional cyberattack or operational disruption.

• Materiality remains fact-specific and may turn on qualitative consider ...