WASHINGTON: Regulators in the United States have identified the use of artificial intelligence (AI) as a vulnerability in the financial system for the first time, western media reported on Thursday.
The Financial Stability Oversight Council said in its annual report that there is a need to observe “rapid developments in artificial intelligence (AI), including generative artificial intelligence, to ensure that oversight structures keep up with or stay ahead of developing risks to the system.
Generative artificial intelligence software can rapidly produce images, text, and audio from simple commands in daily language.
US Officials Identify Use of Artificial Intelligence as Risk in Financial System
Treasury Secretary Janet Yellen said on Thursday that as financial organizations and entities continue to evaluate and also adopt innovative and latest technologies, uptake of artificial intelligence could accelerate.
She said that supporting answerable innovation in AI can permit the financial system to gain benefits like efficiency, but there are also principles for risk management that must be applied.
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The report called for financial entities and regulators to enhance their ability to monitor artificial intelligence innovation, and also identify emerging risks in it.
Other suggestions include pushing for collection of data so that officials can monitor climate-related financial threats and problems, as well as to adopt legislation permitting stablecoins to be regulated.
