The public may lose faith in financial markets, services and products if guardrails are not put in place that would defend against vulnerabilities brought about by artificial intelligence, which has been used by the financial industry for over two decades, according to a recent report by the Technology Advisory Committee within the Commodity Futures Trading Commission.
The purpose of the report is to help the public understand how AI might impact financial markets, the CFTC said Thursday.
The TAC described AI as “a potentially valuable tool to improve automated processes governing core functions, and to improve efficiency” but warned that it could also be “less beneficial” and “more dangerous” if various risks are not addressed, like AI bias, a lack of transparency on how AI models work and the poisoning of AI training data.
One recommendation that the TAC offers to address these issues is the development by the CFTC of a framework for safe, trustworthy and responsible AI. The committee further notes that the responsible use of AI necessarily calls for the creation of a talent pipeline that would produce professionals well versed in the development and use of AI.