According to a report from BeInCrypto, the Commodity Futures Trading Commission (CFTC) Commissioner, Christy Goldsmith Romero, sees the remarkable potential of artificial intelligence (AI) to bring value to financial markets but also recognizes the related risks.
“In terms of protecting financial stability, particularly where it comes to AI models, there can be great promise and great risk,” Romero stated.
Romero recently gave a keynote before the Consumer Federation of America’s Financial Services Conference.
In the speech, Romero touched on AI having its benefits, but also being coupled with the potential for loss that must be given attention to take pleasure in the benefits:
“Artificial intelligence is a consequential technology that could aid in breakthroughs in areas like healthcare, mitigating climate change, cybersecurity, fraud detection, and more. However, we have to manage risks so that we can receive these promises.”
Romero expressed her commitment to advocating for responsible AI.
She emphasized maintaining fairness for all stakeholders through a see-through approach that can satisfy regular audits and reviews. Adding, “It means ensuring that AI algorithms and outcomes are transparent, explainable, and auditable.”
This comes after Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, warning financial advisors about the use of AI.
Gensler showed concern, particularly about the potential issues posed by AI’s predictive analytics tools. Also, if they
compromise the interests of customers:
“If a firm’s optimization function takes the interest of the firm into consideration as well as the interest of the investor, this can lead to conflicts of interest.”
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