Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), said that artificial intelligence may play a major role in a future financial crisis. Gensler noted that recent developments in artificial intelligence could be detrimental to the global economy if a single group or small group of big tech companies dominates the space.
Gensler said this today (Monday) at note Ready for delivery at the National Press Club, Washington. Although the SEC chair noted that AI has the potential to promote greater financial inclusion and improve user experience in the financial industry, he added that the technology could also play a “central role in informing subsequent actions of a future financial crisis.”
“Artificial intelligence may increase financial vulnerability because it can enhance grazing with individual actors making similar decisions because they receive the same signal from an underlying model or data aggregator,” Gensler explained. This could encourage monoculture. It could also exacerbate the network interdependence inherent in the global financial system.”
Gensler’s comments come as the recent launch of ChatGPT by OpenAI and Google’s Bard has sparked renewed interest in AI adoption. Gensler noted that while the SEC is “technology-neutral,” the agency is focused on “outcomes, rather than the tool itself.”
US Securities and Exchange Commission (SEC) AI regulations in the brokerage industry
According to Gensler, AI is already being deployed in the financial industry to run call centers, account opening procedures, compliance software, and trading algorithms. This technology has also “fueled rapid change in the field of robo-advisors and brokerage applications,” added the SEC chair.
However, Gensler believes that conflicts of interest may arise when AI systems are designed with the interests of both the organization and those of its customers in mind. Earlier this month, the securities watchdog took a step toward introducing new rules for brokerages that deploy artificial intelligence to interact with their clients.
Specifically, the Securities and Exchange Commission’s Division of Trade and Markets is looking into whether the agency should introduce rules “regarding brokers’ and dealers’ conflicts in the use of predictive data analytics and artificial intelligence, machine learning
machine learning
Machine learning is defined as an application of artificial intelligence (AI) that looks to learn and improve automatically from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on developing computer programs that can access data and use it to learn for themselves, and this has many potential benefits for most industries and sectors, including the financial services industry. Explaining Machine LearningMachine learning can be explained
Machine learning is defined as an application of artificial intelligence (AI) that looks to learn and improve automatically from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on developing computer programs that can access data and use it to learn for themselves, and this has many potential benefits for most industries and sectors, including the financial services industry. Explaining Machine LearningMachine learning can be explained
Read this termand similar technologies in connection with certain interactions with investors information on the site From the US Office of Information and Regulatory Affairs (OIRA).
The SEC has been in talks about the proposed rules since September 2021 and expects the new rules to be introduced as soon as October of this year.
“As advisors and brokers incorporate these technologies into their services, the advice and recommendations they provide — whether or not AI-based — should be in the best interests of clients and retail clients and not put their interests ahead of those of investors,” Gensler noted in the note.
Gensler expresses mixed feelings about the spike rule
Last Thursday, after years of a protracted legal battle between the SEC and ripple
ripple
Ripple was co-founded by Jed McCaleb and Chris Larsen and debuted in 2012 as a digital exchange network and pre-mined digital currency referred to as XRP. Having a market cap lower than both Bitcoin and Ethereum, Ripple ranks as the 3rd largest cryptocurrency, it is a two-origin decentralized and peer-to-peer (P2P) platform, and its network is capable of functioning in any form of money such as GBP, Ethereum Yen, etc. What is the use of Ripple? Participants in the Ripple known as the Gate
Ripple was co-founded by Jed McCaleb and Chris Larsen and debuted in 2012 as a digital exchange network and pre-mined digital currency referred to as XRP. Having a market cap lower than both Bitcoin and Ethereum, Ripple ranks as the 3rd largest cryptocurrency, it is a two-origin decentralized and peer-to-peer (P2P) platform, and its network is capable of functioning in any form of money such as GBP, Ethereum Yen, etc. What is the use of Ripple? Participants in the Ripple known as the Gate
Read this termA US court in the Southern District of New York has ruled that the digital asset company’s sale of XRP tokens to retail investors does not violate US federal securities law. However, the ruling, which experts consider a “partial victory” for Ripple, found the sale of the token to institutional investors illegal.
On Monday, Gensler publicly commented on the ruling for the first time, stating that he was “delighted” and “disappointed.” SEC chief in an interview with Hey ho! finance He expressed his satisfaction with the part of the provision relating to institutional investors and the dissatisfaction of the other party relating to retail clients.
LSEG’s Head of FX Sales departs; CNMV warns of illegal companies; Read our latest nuggets news.
Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), said that artificial intelligence may play a major role in a future financial crisis. Gensler noted that recent developments in artificial intelligence could be detrimental to the global economy if a single group or small group of big tech companies dominates the space.
Gensler said this today (Monday) at note Ready for delivery at the National Press Club, Washington. Although the SEC chair noted that AI has the potential to promote greater financial inclusion and improve user experience in the financial industry, he added that the technology could also play a “central role in informing subsequent actions of a future financial crisis.”
“Artificial intelligence may increase financial vulnerability because it can enhance grazing with individual actors making similar decisions because they receive the same signal from an underlying model or data aggregator,” Gensler explained. This could encourage monoculture. It could also exacerbate the network interdependence inherent in the global financial system.”
Gensler’s comments come as the recent launch of ChatGPT by OpenAI and Google’s Bard has sparked renewed interest in AI adoption. Gensler noted that while the SEC is “technology-neutral,” the agency is focused on “outcomes, rather than the tool itself.”
US Securities and Exchange Commission (SEC) AI regulations in the brokerage industry
According to Gensler, AI is already being deployed in the financial industry to run call centers, account opening procedures, compliance software, and trading algorithms. This technology has also “fueled rapid change in the field of robo-advisors and brokerage applications,” added the SEC chair.
However, Gensler believes that conflicts of interest may arise when AI systems are designed with the interests of both the organization and those of its customers in mind. Earlier this month, the securities watchdog took a step toward introducing new rules for brokerages that deploy artificial intelligence to interact with their clients.
Specifically, the Securities and Exchange Commission’s Division of Trade and Markets is looking into whether the agency should introduce rules “regarding brokers’ and dealers’ conflicts in the use of predictive data analytics and artificial intelligence, machine learning
machine learning
Machine learning is defined as an application of artificial intelligence (AI) that looks to learn and improve automatically from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on developing computer programs that can access data and use it to learn for themselves, and this has many potential benefits for most industries and sectors, including the financial services industry. Explaining Machine LearningMachine learning can be explained
Machine learning is defined as an application of artificial intelligence (AI) that looks to learn and improve automatically from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on developing computer programs that can access data and use it to learn for themselves, and this has many potential benefits for most industries and sectors, including the financial services industry. Explaining Machine LearningMachine learning can be explained
Read this termand similar technologies in connection with certain interactions with investors information on the site From the US Office of Information and Regulatory Affairs (OIRA).
The SEC has been in talks about the proposed rules since September 2021 and expects the new rules to be introduced as soon as October of this year.
“As advisors and brokers incorporate these technologies into their services, the advice and recommendations they provide — whether or not AI-based — should be in the best interests of clients and retail clients and not put their interests ahead of those of investors,” Gensler noted in the note.
Gensler expresses mixed feelings about the spike rule
Last Thursday, after years of a protracted legal battle between the SEC and ripple
ripple
Ripple was co-founded by Jed McCaleb and Chris Larsen and debuted in 2012 as a digital exchange network and pre-mined digital currency referred to as XRP. Having a market cap lower than both Bitcoin and Ethereum, Ripple ranks as the 3rd largest cryptocurrency, it is a two-origin decentralized and peer-to-peer (P2P) platform, and its network is capable of functioning in any form of money such as GBP, Ethereum Yen, etc. What is the use of Ripple? Participants in the Ripple known as the Gate
Ripple was co-founded by Jed McCaleb and Chris Larsen and debuted in 2012 as a digital exchange network and pre-mined digital currency referred to as XRP. Having a lower market cap than both Bitcoin and Ethereum, Ripple ranks as the 3rd largest cryptocurrency, is a two-origin decentralized and peer-to-peer (P2P) platform, and its network is capable of functioning in any form of money such as GBP, Ethereum Yen, etc. What is the use of Ripple? Participants in the Ripple known as the Gate
Read this termA US court in the Southern District of New York has ruled that the digital asset company’s sale of XRP tokens to retail investors does not violate US federal securities law. However, the ruling, which experts consider a “partial victory” for Ripple, found the sale of the token to institutional investors illegal.
On Monday, Gensler publicly commented on the ruling for the first time, stating that he was “delighted” and “disappointed.” SEC chief in an interview with Hey ho! finance He expressed his satisfaction with the part of the provision relating to institutional investors and the dissatisfaction of the other party relating to retail clients.
LSEG’s Head of FX Sales departs; CNMV warns of illegal companies; Read our latest nuggets news.