FSOC officially classifies AI as an ‘emerging vulnerability’
Mentions security, privacy, hallucination issues, etc.
U.S. financial regulators have warned for the first time that the use of artificial intelligence (AI) could pose risks to the financial system.
According to CNN Business on the 14th (local time), the U.S. Financial Stability Oversight Committee (FSOC) officially classified AI as an “emerging vulnerability.”
“AI has the potential to drive innovation and efficiency, but its use in financial services requires careful implementation and oversight to manage potential risks,” FSOC warned.
Specifically, FSOC believes that AI may pose certain risks, including cybersecurity, compliance, and privacy issues.
They also raised concerns regarding generative AI models such as ChatGPT. For example, financial companies using generative AI may pose risks in data security, consumer protection, and privacy. Authorities also pointed out that the generative AI model produces hallucinations (giving wrong answers).
In addition, FSOC also pointed out that some AI models operate like black boxes so that their internal operations cannot be accessed from the outside.
FSOC noted that “lack of explainability may make it difficult to assess the conceptual soundness of the system and may increase uncertainty about its adequacy and reliability.”
“As approaches to AI become more complex, identifying and correcting errors and biases may become much more difficult, requiring vigilance from technology developers, the financial sector companies that use them, and the regulators that oversee those companies.” “He also added.
Previously, FSOC classified climate change as a ‘new threat to U.S. financial stability’ about two years ago.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.