Gary Gensler, United States Securities and Exchange Commission (SEC) Chair, mentioned on September 12, 2023 in a Senate oversight hearing that his agency was currently using artificial intelligence (AI) technologies. AI technologies are expected to monitor the financial sector for signs of fraud and manipulation, stated Cointelegraph.
Sources revealed that Gensler gave a public speech before the National Press Club on July 17, 2023. He is believed to have mentioned the case for integrating AI technologies into the SEC’s surveillance scheme. However, the agency’s explicit use of the tech hadn’t been made public knowledge, Cointelegraph added.
“So, we already do. In some market surveillance and enforcement actions. To look for patterns in the market. … It’s one of the reasons why we’ve asked Congress for greater funding this year, in 2024, to help build up our technology budget for the emerging technologies,” Gensler explained.
It is believed that it’s unclear exactly what form of AI the agency is using. However, the SEC is expected to have filed many analysis reports on the use of AI and algorithmic trading by actors within financial markets, Cointelegraph concluded.
(With insights from Cointelegraph)