Speaking today, Chairman Gary Gensler said that the US Securities and Exchange Commission (SEC) is using AI to surveil financial markets for various forms of misconduct. Specifically, Gensler noted that the technology is currently used “in some market surveillance and enforcement action.”
Additionally, Gensler noted the prevalence of artificial intelligence as a key reason behind the SEC’s request for more funding from Congress. The agency has opted to utilize the technology in order to assess market patterns that could be connected to misconduct.
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SEC Chair Says Agency is Using SEC as Surveillance Tool
The prevalence of artificial technology has certainly been one of the bigger stories of 2023 thus far. Indeed, the arrival of OpenAI’s ChatGPT catapulted generative AI and tech like it into the mainstream. Now, the SEC has been discussing their use of the technology and how it has been implemented.
Speaking at a hearing taking place today, Chairman Gary Gensler said that the SEC is currently utilizing AI to monitor the financial market for misconduct. Specifically, it reveals that the technology has been a key surveillance tool in the agency’s observation of patterns and subsequent enforcement action.
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Gensler said the technology is used “in some market surveillance and enforcement actions.” Moreover, he stated it is utilized “to look for patterns in the market,” similar to “self-regulatory organizations” that use it as well.
Additionally, Gensler noted artificial intelligence as the reason behind the request for greater SEC funding. Specifically, he stated that the agency desires to build up its technological presence. Therefore, it increases its ability to engage with these kinds of tools.
Artificial intelligence usage across industries has been the subject of much debate. Subsequently, its usage in government activity is certainly only a matter of time. Considering the SEC’s answer, it is likely that they are not alone in their adoption of the technology.