U.S. Exchange Regulator Considers AI a Threat to Financial Stability
Date: 2023-07-19 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
The chairman of the SEC believes that artificial intelligence can, based on its trading signals, form a "herd" in the financial market
The rapid development of artificial intelligence (AI) may push international financial regulators to change the regulatory environment. This is the opinion of the head of the US Securities and Exchange Commission (SEC) Gary Gensler, writes Bloomberg.
According to Gensler, regulators must be prepared to solve the problems associated with the rapid development of technology. As Gensler said, artificial intelligence has the potential to "increase financial instability." This is due to the fact that artificial intelligence can lead to "herding" in the market due to the same trading signals.
The SEC itself does not yet know whether it is necessary to approve new rules in the financial market due to AI. The exchange regulator plans to consider proposals for new regulatory requirements in the fall of 2023.
Gensler has previously urged financial advisers not to rely on artificial intelligence. In March, the head of the SEC said that the use of software algorithms creates the prerequisites for a "conflict of interest." What exactly the conflict is is unclear.
In June, the editors wrote that a study by the Investor Index revealed a predisposition of the British to the advice of chatbots. Then it turned out that the majority of British investors (73%) trust the financial advice of ChatGPT. As the researchers found out, more than 40% of young traders have already sought advice from a chatbot, and more than half of traders over the age of 65 believe in the potential of ChatGPT as a financial advisor. At the same time, experts note that people rely less on the recommendations of professional consultants and prefer to study the situation on their own. This answer was given by 54% of British investors, which is 11% more than in 2022.
