The article explores critical compliance and regulatory risks associated with AI in 2025, focusing on financial services. It highlights the SEC's priority on AI oversight, emphasizing areas such as fraud prevention, trading, and AML processes. It also discusses transparency and audit requirements, key challenges like cybersecurity, and emerging ethical and legal risks. The content is vital for financial firms, regulators, and AI developers to understand compliance dynamics, ensuring responsible AI use and governance. Keywords: AI compliance, SEC, transparency, ethical risks.