SEC chairman Gary Gensler evaluated the risks of artificial intelligence to financial stability.
SEC chairman Gary Gensler referred to artificial intelligence in his statements. The head of the SEC made comments that artificial intelligence could negatively affect financial stability.
Gary Gensler talks about the financial risks of artificial intelligence
Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), warned that artificial intelligence could pose financial stability risks. Gensler notes that the proliferation of artificial intelligence may require governments to review regulations to maintain global financial stability.
Gensler says that artificial intelligence can increase financial vulnerability, and that individual actors who make similar decisions may exhibit herd behavior. He also emphasizes that the current model risk management guide should be updated as it was written before this new wave of data analytics.
Gensler, who often discusses the impact of artificial intelligence on the financial sector, states that companies should be aware of how their use of artificial intelligence may involve securities rules. He says the SEC will be wary if it’s used for purposes such as financial fraud, watering down corporate returns, or luring investors into certain products.
Gensler emphasizes that artificial intelligence is a transformative technology in the financial world and that regulators have to fight against these developments.
60275
