A panel of regulators has raised concerns about the rapid adoption of artificial intelligence (AI) and its potential risks for the United States’ financial system. The Financial Stability Oversight Council, chaired by Treasury Secretary Janet Yellen, highlighted these risks in its annual financial stability report.
While acknowledging the benefits of AI in driving innovation and efficiency in financial institutions, the council emphasized the need for companies and regulators to remain vigilant due to the fast-paced technological advancements. The report specifically mentioned cybersecurity and model risks as potential areas of concern.
The council urged companies and regulators to enhance their knowledge and capabilities in monitoring AI innovation and usage to identify emerging risks. It noted that the technical complexity of AI tools poses challenges for institutions to effectively explain or monitor them, potentially leading to biased or inaccurate results.
Additionally, the report highlighted the increasing reliance of AI tools on extensive external data sets and third-party vendors, raising privacy and cybersecurity concerns.
Recognizing the importance of addressing AI risks, certain regulators, including the Securities and Exchange Commission, have examined firms’ AI usage. The White House has also issued an executive order to tackle and reduce these risks.
Concerns about AI’s potential threats have been expressed by various figures, including Pope Francis, Elon Musk, and Steve Wozniak. Pope Francis called for an international treaty to ethically regulate AI development, warning against the risk of a “technological dictatorship” without proper controls.
In March 2023, over 2,600 tech leaders and researchers, including Musk and Wozniak, signed a petition urging a “pause” in AI development due to the potential profound risks to society and humanity.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Steve Wozniak, Elon Musk, Pope Francis, Janet Yellen |
| Companies | Securities and Exchange Commission, Financial Stability Oversight Council, None, White House, OpenAI |
| Currencies | None |
| Securities | None |
