SEC and Artificial Intelligence (AI): Gary Gensler warns there will be financial crises
- Gary Gensler, Chairman of the SEC, expresses concerns about AI causing future financial crises.
- Gensler specifically mentions generative AI tools like ChatGPT that could transform businesses and society.
- He warns that some AI models may prioritize corporate interests over investors, leading to conflicts of interest.
- The SEC has proposed measures to address these conflicts and embed them in AI models.
- Gensler emphasizes that investment advisers using AI have the same fiduciary duty to their clients.
SEC and Artificial Intelligence (AI): fake news about the Chairman’s resignation
- Gensler aims to protect companies and investors from potential risks associated with AI technology.
- He highlights that humans who build AI models set the parameters and should not delegate all responsibility to AI.
- Gensler experienced a situation where false news about his resignation spread through an AI platform.
- The news was debunked by a FOX Business Network correspondent, revealing that 96.8% of the news was generated by an AI tool.
- AI tools like ChatGPT currently do not consider source reliability or have the ability to verify authoritativeness.
AI is already a reality
- Several companies, including Bitget, Microsoft, and Amazon, are already using AI tools.
- Bitget’s crypto-exchange has introduced an AI feature for grid trading strategies.
- Microsoft partnered with Axelar to offer blockchain-based interoperability solutions and make AI more accessible through the Azure marketplace.
- Amazon has invested in the AWS Generative AI Innovation Center to support customers in developing AI-based products and services.
- Elon Musk has launched xAI, an alternative to ChatGPT, to explore the true nature of the Universe.
Hot Take
Gary Gensler’s concerns about AI and its potential impact on financial crises are valid. As AI continues to advance and become more prevalent in various industries, it is crucial to address the ethical and regulatory implications. Companies and investors should not solely rely on AI models and should consider human oversight and responsibility. Additionally, the spread of fake news generated by AI tools highlights the need for better source verification and reliability assessment. While AI offers numerous benefits, it is important to approach its implementation with caution and ensure proper safeguards are in place.
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