The chair of the United States Securities and Exchange Commission (SEC), Gary Gensler says the rise of Artificial Intelligence (AI) would make a change in nearly everything.
In his speech on July 17 before the National Press Club, he stated several possible use cases for AI that could assist the regulator in its role as securities.
He later spoke about the XRP’s ruling in the federal court case.
“We at the SEC also could benefit from staff making greater use of AI in their market surveillance, disclosure review, exams, enforcement, and economic analysis,” he said.
The SEC has questioned almost 54 cryptocurrency firms with application actions between 2018 to mid-2023. The Breakdown of the FTX led to the rise of these actions.
SEC chair also spoke about the technology and the impacts it could have on humanity and Financial Markets.
“AI opens up tremendous opportunities for humanity, from healthcare to science to finance. As machines take on pattern recognition, particularly when done at scale, this can create great efficiencies across the economy,” said Gensler.
Mr. Gary also added, “I believe it’s the most transformative technology of our time, on par with the internet and mass production of automobiles”.
“AI may heighten financial fragility,” Gensler said.
All the positive sentiments, AI systems are bursting with bias and deception. Adding to that, Gensler also said about AI violating privacy rights and various internet conflicts.
He also stated that some predictive AI models reflect past biases which makes the system less accurate in some cases that could lead to false prediction.
Gensler highlighted that he was a victim of falsification of AI-generated texts as his resignation document was circulating all over the internet.
“That’s why I’ve asked SEC staff to make recommendations for rule proposals for the Commission’s consideration regarding how best to address such potential conflicts across the range of investor interactions.”
He also believes that the more AI monopolies, the more disturbance it would create in the future financial crisis.
In an interview with Yahoo on July 17, Gensler said that the authorities would take strict actions against the culprits who use AI to defraud investors.
“Fraud is fraud. If a bad actor uses artificial intelligence to try to deceive the public, we’re authorized but also mandated by Congress to go after that,” he said.
Also Read: Video Shows Gary Gensler Claiming ETH & BTC Are Not Security
