SEC Chairman Gary Gensler expresses concern over AI-driven financial risks
The post SEC Chairman Gary Gensler expresses concern over AI-driven financial risks appeared on BitcoinEthereumNews.com. TLDR Gary Gensler, Chairman of the SEC, voices concerns over AI-driven financial risks, stressing the importance of crafting a fitting regulatory framework. Comprehensive regulation requires joint efforts from multiple institutions, with bodies like the Financial Stability Board (FSB) playing a crucial role. As technological advancements continue to propel industries forward, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), recently voiced concerns about the potential financial risks associated with the rise of Artificial Intelligence (AI). Specifically, Gensler is urging regulators to adopt proactive measures to safeguard the financial ecosystem from potential AI-induced instabilities. The growing influence of AI in the financial sector AI technologies have firmly planted their roots in various sectors, with the financial industry being no exception. Gensler, who has been known for his skepticism towards the unchecked growth and influence of AI, recently warned of the looming dangers that the technology could pose to the financial world. The crux of his concern revolves around the vast amounts of data that AI platforms manage. As these platforms become increasingly intricate and influential, the susceptibility of the financial system to risks grows proportionally. These platforms have the potential to disrupt traditional financial structures, which raises alarm bells for regulators. Gensler explained, “It’s a hard challenge. It’s a hard financial stability issue to address because most of our regulation is about individual institutions, individual banks, individual money market funds, individual brokers; it’s just like what we do.” He added that many institutions could be relying on similar base models or data aggregators, thereby creating a collective vulnerability. Gensler’s statement comes at a time when the world is witnessing a rise in commercialized AI products, including OpenAI’s ChatGPT and Google’s Bard, which have demonstrated the ability to generate diverse responses from simple prompts. Challenges in crafting an AI…
The post SEC Chairman Gary Gensler expresses concern over AI-driven financial risks appeared on BitcoinEthereumNews.com.
TLDR Gary Gensler, Chairman of the SEC, voices concerns over AI-driven financial risks, stressing the importance of crafting a fitting regulatory framework. Comprehensive regulation requires joint efforts from multiple institutions, with bodies like the Financial Stability Board (FSB) playing a crucial role. As technological advancements continue to propel industries forward, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), recently voiced concerns about the potential financial risks associated with the rise of Artificial Intelligence (AI). Specifically, Gensler is urging regulators to adopt proactive measures to safeguard the financial ecosystem from potential AI-induced instabilities. The growing influence of AI in the financial sector AI technologies have firmly planted their roots in various sectors, with the financial industry being no exception. Gensler, who has been known for his skepticism towards the unchecked growth and influence of AI, recently warned of the looming dangers that the technology could pose to the financial world. The crux of his concern revolves around the vast amounts of data that AI platforms manage. As these platforms become increasingly intricate and influential, the susceptibility of the financial system to risks grows proportionally. These platforms have the potential to disrupt traditional financial structures, which raises alarm bells for regulators. Gensler explained, “It’s a hard challenge. It’s a hard financial stability issue to address because most of our regulation is about individual institutions, individual banks, individual money market funds, individual brokers; it’s just like what we do.” He added that many institutions could be relying on similar base models or data aggregators, thereby creating a collective vulnerability. Gensler’s statement comes at a time when the world is witnessing a rise in commercialized AI products, including OpenAI’s ChatGPT and Google’s Bard, which have demonstrated the ability to generate diverse responses from simple prompts. Challenges in crafting an AI…
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