The U.S. Treasury Prepares to Address a Broad Range of Sector Risks and Opportunities
The U.S. Treasury is preparing to address a wide range of risks and opportunities related to the AI sector in the years to come.
This is the topic on which US Treasury Secretary Janet Yellen delivered the keynote speech at the Artificial Intelligence and Financial Stability Conference. The event was hosted by the US Financial Stability Oversight Council (FSOC) in partnership with the Brookings Institution on June 6-7.
According to the Food Safety Oversight Council, this is the first time in a decade that the Council has hosted an event of this type.
During her opening remarks, Secretary Yellen issued a formal call to action in the form of a request for public comment on the risks and opportunities posed by AI from financial institutions , consumers, and other stakeholders with a direct interest in financial stability in the United States.
Yellen outlined several key opportunities for financial institutions using AI, including the benefits of cybersecurity, more accurate forecasting and prediction, and customer service and account management.
However, as the minister said: “There are also new issues to confront, and this is a rapidly developing area. Highlighting the “enormous opportunities” and “significant risks” posed by artificial intelligence technologies, Yellen added: “We have a lot of work ahead of us.”
Among potential risks, Yellen cited concerns about the centralization of AI models and data – which could theoretically expose many market institutions to a single point of failure. She also mentioned the tendency of AI to create or exacerbate bias due to the black-box nature of many models.
about: The European Union watchdog is urging banks to put customers first in the use of artificial intelligence.
In related news, US antitrust official Jonathan Kanter announced that his office was investigating the artificial intelligence sector for monopoly concerns.
As Cointelegraph recently reported, Kanter’s concerns extend to the various components of the AI technology stack and whether or not a few companies control key choke points in the development process.
The office is expected to examine issues such as Microsoft’s broad understanding of the cloud computing market and Nvidia’s dominance in the artificial intelligence chip market.
