Artificial Intelligence: The Pope’s Concerns
Nowadays, everyone has an opinion on artificial intelligence (AI) and its potential risks. Even Pope Francis — the head of the Catholic Church — warned humanity of AI’s potential dangers and explained what needs to be done to control it. The Pope wants to see an international treaty to regulate AI to ensure it is developed and used ethically. Otherwise, we risk falling into the spiral of a “technological dictatorship.” The threat of AI arises when developers have a “desire for profit or thirst for power” that dominates the wish to exist freely and peacefully, he added.
The Financial Stability Oversight Council’s Warning
The Financial Stability Oversight Council (FSOC) has also expressed concerns about AI. In its annual report, the organization emphasized that AI carries specific risks, such as cybersecurity and model risks. It suggested that companies and regulators enhance their knowledge and capabilities to monitor AI innovation and usage and identify emerging risks. According to the report, specific AI tools are highly technical and complex, posing challenges for institutions to explain or monitor them effectively. The report warns that companies and regulators may overlook biased or inaccurate results without a comprehensive understanding.
UK Judges’ Guidance on AI
Judges in the United Kingdom are also considering the risks of using AI in their work. Four senior judges have issued guidance for AI usage in courts and tribunals. While there are potentially useful instances of AI, such as summarizing texts or composing emails, the guidance cautions judges against consuming false information produced through AI searches and summaries. It advises judges to be vigilant about anything false being produced by AI in their name and strongly discourages using AI for legal research and analysis.
Tether Collaborates with FBI
Tether, the company behind the stablecoin Tether (USDT), has onboarded the Federal Bureau of Investigation (FBI) to its platform as part of collaboration efforts with law enforcement. This move comes after Tether disclosed letters directed to U.S. lawmakers addressing requests for intervention by the Department of Justice (DOJ) about the illicit use of its stablecoin. Tether assured that it has implemented measures like a Know Your Customer program, transaction monitoring, and surveillance monitoring tools to track client activity continuously.
KuCoin’s Agreement with New York
Crypto exchange KuCoin has agreed to pay $22 million to the State of New York and ban state residents from using its platform. The agreement comes after KuCoin admitted that it represented itself as an “exchange” without being registered under New York State laws. As part of the agreement, KuCoin will close the accounts of all New York resident users within 120 days and prevent them from opening new accounts in the future. Access to withdrawals will be limited to 30 days, allowing users to withdraw their funds within that period.
IRS Highlights Crypto Crimes
The criminal investigation unit of the U.S. Internal Revenue Service has listed four crypto-related cases among its top 10 “most prominent and high-profile investigations” in 2023. These cases involve cryptocurrency seizures, fraudulent practices, money laundering, and other schemes. OneCoin co-founder Karl Sebastian Greenwood’s case was particularly notable, as he was sentenced to 20 years in prison for marketing and selling a fraudulent crypto asset.
Hot Take: The Need for Ethical AI Regulation
As AI continues to advance, concerns about its risks and potential misuse are growing. From global leaders like Pope Francis to financial regulators and judges, there is a consensus that AI needs ethical regulation to ensure its development and usage align with human values. The Financial Stability Oversight Council emphasizes the importance of understanding and monitoring AI to mitigate specific risks. Meanwhile, judges caution against relying on AI-produced information without verification. Tether’s collaboration with the FBI demonstrates efforts to prevent illicit use of its stablecoin. KuCoin’s agreement to pay a fine and restrict access for New York residents highlights the need for compliance in the crypto industry. The IRS’s focus on crypto crimes underscores the ongoing challenges in maintaining integrity within the digital asset space.
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