Gary Gensler Calls for Full AI Regulation
Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, has expressed his concerns about the influence of Artificial Intelligence (AI) in the financial ecosystem. He believes that regulators need to be more proactive in taming AI to avoid a financial collapse in the next decade. Gensler points out that with the concentration of data managed by AI-powered platforms, there are growing risks to financial systems.
However, he acknowledges that crafting a framework for AI regulation in the US will be a challenging task. Tech firms are designing diverse solutions that fall outside the exact role of the SEC, which makes it difficult for them to regulate effectively.
The SEC’s Efforts on AI Regulation
Gensler emphasizes that the SEC has not been idle when it comes to AI regulation. Since becoming Chairman, he has consistently supported positive AI trends and called on Congress to back the commission’s position. The emergence of commercialized AI products like ChatGPT and Google’s Bard has raised concerns about their impact on various industries.
Joint Effort Needed for AI Regulation
Gensler’s approach to taming AI remains uncertain as the technology is still developing in many industries. Addressing conflict of interest in financial data modeled by AI alone will not be enough. Efforts from organizations like the Financial Stability Board (FSB) are necessary to address the systemic risk posed by AI.
Hot Take: Gary Gensler Urges Regulators to Tame AI
Gary Gensler, Chairman of the SEC, warns regulators about the influence of AI in the financial ecosystem and calls for proactive measures to avoid a future financial collapse. While he recognizes the need for regulation, he acknowledges the challenges of crafting a framework for AI in the US. Gensler also highlights the SEC’s efforts in supporting positive AI trends and emphasizes the importance of a joint effort to address the systemic risks posed by AI. As AI continues to evolve, it is crucial for regulators and organizations like the FSB to work together to effectively regulate and manage its impact on financial systems.