ICYMI: In its annual report last month, the Financial Stability Oversight Council (FSOC), a group comprising the heads of US financial regulators, identified the growing use of AI as a significant risk to financial markets. However, the regulators also acknowledged the potentially transformative benefits of AI if these risks are managed effectively.
Treasury Secretary Janet Yellen, who leads the FSOC, called AI an "emerging threat" but also expressed confidence in existing regulations to manage potential risks. "Supporting responsible innovation in this area can allow the financial system to reap benefits like increased efficiency, but there are also existing principles and rules for risk management that should be applied," she said.
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