SEC Chair Shifts Focus to AI: What You Need to Know
• SEC Chair Gary Gensler has shifted his focus from crypto to AI in order to regulate the financial market.
• He expressed concerns that if major tech companies monopolize its development for financial market applications, it could potentially destabilize the global economy.
• He highlighted various risks associated with the ongoing AI boom, including mass automation, which could affect trillions of dollars worth of assets traded on SEC-monitored markets.
SEC Chair Wants To Shift Focus From Crypto To AI
The Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, has opted to redirect his attention from enforcing regulations in the cryptocurrency space to regulating artificial intelligence (AI). He recently expressed concerns that if major tech companies monopolize its development for financial market applications, it could potentially destabilize the global economy.
Risks Associated With Ongoing AI Boom
Gensler also highlighted various risks associated with the ongoing AI boom, including mass automation, which could affect trillions of dollars worth of assets traded on SEC-monitored markets. He mentioned that he has requested the agency’s staff to propose potential regulations that address how AI could be optimized to benefit intermediaries, potentially at the expense of investors.
AI Poses More Risk Than Crypto
According to Gensler, despite the crypto space being troubled by scams, hacks and money laundering activities, AI poses even more substantial financial risks to US residents. He believes that although investment recommendations generated by AI have potential benefits such as enhanced customer experience and lower costs for investors due to increased competition among advisors; there are still significant risks associated with this technology such as herding behavior and misallocation of capital or wealth inequality across societies.
Regulation Necessary For Proper Utilization Of Technology
Finally, Gensler concluded his speech by emphasizing that proper regulation is necessary in order for us to properly utilize this new technology without any major disruption or damage caused in any industry sector. He pointed out that while it may take some time for these regulations to be implemented properly and effectively; regulators should aim at establishing a framework where they can monitor use cases closely so they can intervene quickly when something goes wrong instead of waiting passive until a serious incident occurs first before taking action against any entity or company responsible for its misuse or fraudulent activities made through its usage.