Gensler also touched on the concept of 'AI washing', where companies falsely claim to be using AI, and the risk of AI 'hallucinations', where AI models generate inaccurate or false information. He emphasized the need for companies to ensure any recommendations or advice provided by AI models are not based on inaccurate information. Gensler concluded by stating that the SEC's role is to allow issuers and investors to benefit from AI while also guarding against inherent risks.
Key takeaways:
- The Chair of the Securities and Exchange Commission, Gary Gensler, discussed the potential benefits and challenges of artificial intelligence (AI) in finance and law.
- He highlighted the potential for AI to create efficiencies and enhance user experience in finance, but also raised concerns about the unexplainability of AI models, potential for biased decisions, and inaccuracies in predictive models.
- Gensler discussed the concept of AI washing, where companies falsely claim to be using AI, and emphasized the need for truthful disclosure about AI use and associated risks.
- He also addressed the potential for AI models to "hallucinate" or produce inaccurate results, and the need for companies to ensure any recommendations or advice provided by AI models are not based on inaccurate information.