US Securities and Exchange Commission Chairman Gary Gensler said that the Wall Street Regulatory Commission is in the process of setting rules to regulate the use of artificial intelligence on trading platforms because it may involve a conflict of interest.
Gensler added in a speech on Monday that the committee would also need to adopt “new thinking” to address the challenges posed by the use of technologies such as predictive analysis tools and machine learning to financial stability, reports Al-Rai daily quoting Reuters.
According to a copy of the speech, he explained that if the artificial intelligence systems used in the trading platforms take into account the interest of the platforms and customers alike, “this may lead to a conflict of interest,” adding that he assigned the committee’s work team to develop new regulatory proposals to address this.
He said that AI could also enhance the interconnection of the global financial system, something risk management models may not be ready for at the moment.
He continued, “Many of the challenges that artificial intelligence may pose in the future to financial stability will require new thinking.”
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