Artificial intelligence has quickly emerged as a top concern for federal officials tasked with ensuring the stability of the country's financial system.
Treasury Secretary Janet Yellen speaks during a press conference at the U.S. Embassy in Beijing, China, Sunday, July 9, 2023. WASHINGTON – 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.
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.
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 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.
Financial System Risks Janet Yellen Technology Treasury Department Financial Stability Regulation
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