The CFTC commissioner acknowledges the enormous potential of AI in the financial markets, but stresses the need of taking ethical concerns into account.
Christy Goldsmith Romero, commissioner of the Commodity Futures Trading Commission (CFTC), has acknowledged the dangers and opportunities connected with artificial intelligence (AI) in the financial markets.
According to Romero, “there can be great promise and great risk” when it comes to safeguarding financial stability, especially with AI models.
At the Financial Services Conference put on by the Consumer Federation of America, Romero recently gave a keynote speech.
In his lecture, Romero emphasized that artificial intelligence (AI) offers both advantages and threats that need to be handled if we are to reap those benefits:
“Healthcare, climate change mitigation, cybersecurity, fraud detection, and many more fields stand to benefit from artificial intelligence’s potential as a game-changing technology. To get these promises, we need to control risks.”
In addition, she emphasized the need of a transparent strategy that may be subject to frequent audits and reviews in order to ensure fairness for all parties. Romero chimed in: “It means making sure that AI results and algorithms can be explained and audited.”
Gensler is worried, especially about the problems that AI’s predictive analytics capabilities might cause. Moreover, if they endanger consumer interests:
“Conflicts of interest may arise if an organization’s optimization function considers both the firm’s and the investor’s interests.”
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