CFTC Advisory Committee Makes Recommendations to Address AI Use in Financial Sector

The Technology Advisory Committee of the Commodity Futures Trading Commission has made five recommendations to address the impact of artificial intelligence on the financial market.

In the “Report on Responsible AI in Financial Markets,” the committee disclosed several findings, including the importance of having appropriate industry engagement and relevant guardrails to ensure potential vulnerabilities associated with AI-powered solutions used in the finance sector.

Among the recommendations made is creating an inventory of existing AI use-related regulations and using it to analyze the potential risks associated with AI systems to determine organizations’ compliance, the CFTC said.

Commissioner Christy Goldsmith Romero said the recommendations will help with the responsible development and use of AI systems in the financial market.

CFTC has been eyeing adopting emerging technologies into their day-to-day operations. In January, it appointed Theodore Kaouk as chief data officer and director of its data division, working to ensure CFTC officials have the correct data to come up with informed policy decisions.