Treasury Secretary Janet Yellen warns AI poses risks to financial system
Artificial intelligence has quickly emerged as a top concern for federal officials tasked with ensuring the stability of the country's financial system. Artificial intelligence (artificial intelligence) has become a top concern for federal officials tasked with ensuring the stability of the country's financial system. Treasury Secretary Janet Yellen has warned that it could pose risks to the financial system if it is embedded in it, such as using it to deploy scams or manipulate markets with misinformation. Yellen also highlighted the benefits of AI for detecting fraud and streamlining customer service chatbots, but warned that the more AI is added, the higher the risk it could backfire. The Treasury Department has released a request for information on the uses, opportunities and risks of AI in the financial services sector, allowing stakeholders to share current practices and insights that may guide policymaking. JPMorgan Chase has been using AI for over a decade and has about 2,000 AI or machine learning experts.
نشرت : منذ 4 أسابيع بواسطة http://www.facebook.com/FOX29Buffalo, AHTRA ELNASHAR | The National Desk في Politics Tech
WASHINGTON (TND) – Artificial intelligence has quickly emerged as a top concern for federal officials tasked with ensuring the stability of the country's financial system. When it comes to mitigating risks posed by the technology, the public and private sectors have fallen behind.
“This is a rapidly evolving field. We have our work cut out for us," Treasury Secretary Janet Yellen said in her keynote remarks to kick off a conference on AI and financial stability on Thursday.
Yellen acknowledged the benefits the technology has already ushered in, from more efficient methods of detecting fraud to streamlining customer service chatbots. But she and other experts warn the more AI is embedded in the financial system, the higher the risk is that it could backfire. For example, AI could be used to deploy scams or manipulate markets with misinformation.
“Insufficient or faulty data could also perpetuate or introduce new biases in financial decision-making," Yellen said.
Vulnerabilities are exacerbated by complex and opaque AI models, inadequate risk management frameworks, and only a few models being used by a great number of market participants.
On Thursday, the Treasury Department released a request for information on the uses, opportunities and risks AI poses to the financial services sector. This will allow stakeholders to share current practices and insights that may guide policymaking.
JPMorgan Chase has been using AI for more than a decade and currently has about 2,000 AI or machine learning experts. In his annual report to shareholders, CEO Jamie Dimon explained just how much of a game-changer AI could be.
"While we do not know the full effect or the precise rate at which AI will change our business — or how it will affect society at large — we are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years: Think the printing press, the steam engine, electricity, computing and the Internet, among others," Dimon said.
In Congress, lawmakers are fully aware of the risks and challenges posed by AI and have held dozens of hearings about it in recent years. When it comes to actually taking action on tech-related issues, they've fallen woefully behind.
“Congress’s record on doing anything with social media is a big fat zero," Sen. Mark Warner, D-Va., said during a hearing about AI and financial services back in September. "So I think we have to be humble, modest enough to realize getting from, ‘yes we ought to have guardrails’ to how we write those in a way that we could actually legislate is going to be a huge challenge.”
المواضيع: AI