US identifies use of AI as risk in financial systemWASHINGTON, Dec 15, 2023 (BSS/AFP) - US regulators have identified the use of artificial intelligence as a vulnerability in the financial system for the first time, according to a report released on Thursday. There is a need to monitor "rapid developments in AI, including generative AI, to ensure that oversight structures keep up with or stay ahead of emerging risks to the financial system," said the Financial Stability Oversight Council (FSOC) in its annual report. "As financial institutions continue to evaluate and adopt innovative technologies, uptake of AI could accelerate," said Treasury Secretary Janet Yellen, who chairs the council, on Thursday. The annual report found that the US financial system is resilient and the banking system remains sound -- despite turmoil earlier this year involving the collapse of some US regional lenders. It also called for financial institutions and regulators to boost their ability to monitor AI innovation, and identify emerging risks.

Source: Bangladesh Sangbad Sangstha December 15, 2023 05:47 UTC