Regulators warned that the rapid adoption of artificial intelligence (AI) could pose new risks to the United States financial system if the technology is not adequately supervised, stated Cointelegraph.
The Financial Stability Oversight Council (FSOC), chaired by Janet Yellen, US Treasury Secretary, flagged the risks posed by AI for the first time in its annual financial stability report published on December 14, 2023.
It is believed that specific AI tools are technical and complex, posing challenges for institutions to explain or monitor them effectively. The report is expected to warn companies and regulators for overlooking biased or inaccurate results without a comprehensive understanding, Cointelegraph added.
Furthermore, the report also highlighted that AI tools increasingly depend on extensive external data sets and third-party vendors, bringing forth privacy and cybersecurity concerns, Cointelegraph concluded.
(With insights from Cointelegraph)
