Gary Gensler, chairman of the U.S. Securities and Exchange Commission, praised AI as a transformative technology subject to securities law.
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), highlighted the transformative potential of Artificial Intelligence (AI) in a recent statement.
The SEC Chairman on Possible AI Regulation
The Chair of the Securities and Exchange Commission has expressed a particular interest in harnessing the capabilities of artificial intelligence and the need to modify current securities laws.
AI has the potential to revolutionize various aspects of the financial industry, offering new opportunities but also posing new challenges, according to the SEC chairman.
According to the SEC Chair’s tweet, AI is one of the most significant technological developments in the world today. The head of the securities industry acknowledged the technology’s capacity to analyze vast amounts of data and recognize patterns as a crucial tool that has the potential to significantly improve the efficiency and efficacy of regulatory oversight in the securities market.
I believe AI is the most transformative tech of our time, on par w/ the internet & mass production of cars. AI is used in finance for acct openings, compliance programs, trading algorithms, sentiment analysis, & more. It’s fueled change with robo-advisers & brokerage apps.
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— Gary Gensler (@GaryGensler) August 15, 2023Nevertheless, this recognition of AI’s transformative nature suggests a shift in the SEC’s strategy as it endeavors to remain proactive in the face of rapidly evolving technological advances.
Therefore, Gary Gensler emphasized the need for regulatory frameworks to resolve potential risks. By leveraging AI, regulators can detect fraudulent activities, monitor market trends, and ensure compliance with securities laws more effectively.
In addition, the chair of the SEC emphasized the importance of ongoing collaboration between regulators, industry stakeholders, and AI technology experts in developing appropriate safeguards and guidelines. This collaborative strategy will foster innovation while preserving market integrity and protecting investors.
Position of Industry Stakeholders on AI
Elon Musk, it was reported last month, spoke about the need for AI regulation and supervision. The billionaire drew parallels between the regulation of AI and nuclear technology, stating that AI is potentially harmful on a civilizational level and should be approached with caution in the future.
The CEO of Tesla stated, about the enormous power of AI, that governments do not wish to be governed by digital superintelligence. Therefore, insight for a few years followed by consultation with the industry and oversight would be the correct strategy.
Contrary to prevalent belief, OpenAI CEO Sam Altman announced that he supports China as the global leader in AI regulations and safety guidelines. In addition, Gary Gensler pledged to keep abreast of the most recent advancements in AI technology and its applications in the financial sector.
