U.S. monetary regulators’ annual report warns of AI dangers

A panel of regulators warned on Dec 14 that the fast adoption of artificial intelligence (AI) might create new dangers for the US’ monetary system if the expertise isn’t adequately supervised.

The Monetary Stability Oversight Council, comprised of high monetary regulators and chaired by Treasury Secretary Janet Yellen, flagged the dangers posed by AI for the primary time in its annual monetary stability report.

Although the crew acknowledged AI’s potential to drive innovation and effectivity in monetary establishments, they careworn the necessity for corporations and regulators to stay vigilant because of the swift technological developments.

In its annual report, the group emphasised that AI carries particular dangers, resembling cybersecurity and mannequin dangers. It instructed that corporations and regulators improve their information and capabilities to watch AI innovation and utilization and determine rising dangers.

In response to the report, particular AI instruments are extremely technical and sophisticated, posing challenges for establishments to elucidate or monitor them successfully. The report warns that corporations and regulators might overlook biased or inaccurate outcomes with no complete understanding.

The report additionally highlighted that AI instruments more and more rely upon intensive exterior knowledge units and third-party distributors, bringing forth privateness and cybersecurity considerations.

Sure regulators, together with the Securities and Change Fee (a part of the panel), examined firms’ AI usage. Concurrently, the White Home has issued an executive order to deal with and cut back AI dangers.

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Pope Francis, in a letter on Dec. 8, expressed concerns about the potential threats of AI to humanity. He advocates for a world treaty to ethically regulate AI growth, cautioning in opposition to the danger of a “technological dictatorship” with out correct controls.

Tech figures like Elon Musk and Steve Wozniak have voiced considerations in regards to the swift progress of AI. Over 2,600 tech leaders and researchers, together with Musk and Wozniak, signed a petition in March 2023, urging a “pause” in AI growth. They emphasised the potential “profound dangers to society and humanity” posed by AI developments surpassing GPT-4.

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