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HomeCryptoUS Treasury Secretary warns of financial stability risks caused by AI

US Treasury Secretary warns of financial stability risks caused by AI

US Treasury Secretary Janet Yellen expressed significant concerns about the potential risks that artificial intelligence (AI) poses to the stability of the financial system.

Janet Yellen – US Secretary of the Treasury

Yellen made these comments during a keynote speech at a conference on AI and financial stability on June 6. Her speech emphasized the urgency of addressing new risks and called on both government and the private sector to work together to find solutions.

Risks are increasing

Yellen acknowledged the advances AI has brought to the financial sector, such as improved fraud detection and enhanced customer service through chatbots.

However, she and other experts warn that deeper AI integration could lead to increased risks, including the risk of AI being misused for fraud or market manipulation through misinformation.

Yellen warned:

“Incomplete or erroneous data can also perpetuate or create new biases in financial decision making.”

She highlighted the complexity of AI models, inadequacies in current risk management frameworks and reliance on a limited number of models by many market participants as areas of concern. .

The US Treasury Department has issued a request for information to gather insights from stakeholders on the uses, opportunities and risks of AI in the financial services sector. This initiative aims to inform future policy-making by combining expert opinion and current practice.

Yellen said:

“The enormous opportunities and significant risks associated with the use of AI by financial companies have pushed this issue to the top of the agenda of the U.S. Treasury Department and the Financial Stability Oversight Council. United States Financial Stability Oversight Council).

AI is under close scrutiny

Yellen’s warning comes amid broader government scrutiny of both AI and the companies behind the technology. The DOJ is reportedly preparing to investigate multiple tech giants, including Nvidia and Microsoft, over antitrust and competition concerns related to AI technology.

According to a report by the Financial Times, US antitrust enforcement agency Jonathan Kanter has announced plans to investigate the AI ​​sector due to concerns about the possibility of monopoly.

Kanter emphasized the need to consider the competitive landscape of AI, focusing on areas such as computing power, data to train large language models (LLMs), cloud services, talent engineering and hardware.

Kanter emphasized the urgency of taking action to prevent technology companies from monopolizing the AI ​​market. Kanter recommends real-time regulatory intervention to be more effective and less invasive.

A particular concern is the scarcity of graphics processing units (GPUs) needed for LLM training, with growing demand affecting chip allocation.

Minh Anh

According to Cryptoslate

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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