In addition, the Social Security Administration is tackling the threat of AI-backed fraud schemes, with an internal task force studying AI and devising strategies to prevent AI-related fraud. Meanwhile, the Consumer Financial Protection Bureau has raised concerns about banks' use of AI chatbots, following customer complaints about difficulties in obtaining timely and straightforward answers to their inquiries.
Key takeaways:
- Massachusetts securities regulators are investigating the use of AI by investment firms in the state to protect investors from potential risks.
- The inquiry involves sending letters to firms that employ or are developing AI-based systems, seeking detailed information about their use of AI and measures to ensure transparency, accountability, and investor protection.
- The Social Security Administration is grappling with the threat of AI-backed fraud schemes and has set up an internal task force to study AI and devise strategies to prevent AI-related fraud.
- The Consumer Financial Protection Bureau has raised concerns about banks' use of AI chatbots, citing customer complaints about difficulties in obtaining timely and straightforward answers to their inquiries.