Artificial intelligence “could aid in breakthroughs,” acknowledged Commodity Futures Trading Commission Commissioner Christy Goldsmith Romero in a keynote address today, but she asserted that regulators must “manage risks so that we can receive these promises.”

Romero’s remarks were the highlight of the first day of the annual Financial Services Conference, hosted in Washington, D.C., by the Consumer Federation of America.

“In terms of protecting financial stability, particularly where it comes to AI models, there can be great promise and great risk,” she said. “It is essential that regulators increase their capacity to understand AI and monitor how AI is being used in regulated financial services.”

Romero said AI regulation is a “critical issue,” explaining that “data and assumptions matter” with AI models. She cited “concentration risk” as one potential downside: because developing AI can be very expensive, we may rely on just a few models.

“Excessive reliance on a few AI models could lead to herd behavior,” she explained, citing SEC Chair Gary Gensler.

“Who is making decisions, including determining that the deployment of AI is responsible?” Romero asked. “More in the CFTC space, the use of AI for algorithmic trading, trade settlement, margin calls, collateral management or othe

Go to Source to See Full Article
Author: Decrypt Staff

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details