U.S. financial regulators’ annual report warns of AI risks
According to the report, specific AI tools are highly technical and complex, posing challenges for institutions to explain or monitor them effectively.
A panel of regulators warned on Dec 14 that the rapid adoption of artificial intelligence (AI) could create new risks for the United States’ financial system if the technology is not adequately supervised.
The Financial Stability Oversight Council, comprised of top financial regulators and chaired by Treasury Secretary Janet Yellen, flagged the risks posed by AI for the first time in its annual financial stability report.
Though the team acknowledged AI’s potential to drive innovation and efficiency in financial institutions, they stressed the need for companies and regulators to remain vigilant due to the swift technological advancements.
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Author: Amaka Nwaokocha
