U.S. Treasury Secretary Janet Yellen on Thursday warned financial institution officers and tech executives in regards to the dangers related to using synthetic intelligence (AI) in finance.
“Specific vulnerabilities may arise from the complexity and opacity of AI models; inadequate risk management frameworks to account for AI risks; and interconnections that emerge as many market participants rely on the same data and models,” she stated throughout her speech on the Financial Stability Oversight Council Conference on Artificial Intelligence and Financial Stability.
“Concentration among vendors developing models, providing data, and providing cloud services may also introduce risks, which could amplify existing third-party service provider risks,” she stated. “And insufficient or faulty data could also perpetuate or introduce new biases in financial decision making.”
Yellen’s feedback got here after the Treasury Department earlier issued a request for public data on makes use of, alternatives and dangers of AI within the monetary providers sector.
“The tremendous opportunities and significant risks associated with the use of AI by financial companies have moved this issue toward the top of Treasury’s and the Financial Stability Oversight Council’s agendas,” stated Yellen.
Source: www.anews.com.tr