In a recent speech at the National Press Club, Securities and Exchange Commission (SEC) Chair Gary Gensler emphasized the transformative power of artificial intelligence (AI) and its potential to disrupt various sectors. Gensler likened AI to other groundbreaking technologies such as the internet and mass production of automobiles. He believes that AI has the capacity to drive innovations that can enhance customer experiences in banking and automate mundane tasks more efficiently.
The rise of generative AI has been a prominent trend this year. The launch and success of ChatGPT have generated significant interest in AI products that utilize text, image, and video training data to generate content. These chatbots and similar language models can produce human-like responses based on relationships they identify from analyzing vast amounts of written material available on the internet and other sources.
Gensler cautioned companies against exaggerating the capabilities of AI or misusing its power for deceptive purposes. He stressed the importance of accuracy in statements made by organizations, emphasizing that fraud remains a serious offense under securities laws. The SEC is dedicated to identifying and prosecuting any fraudulent activities that could jeopardize investor trust, capital formation, or market integrity.
Recognizing both the potential benefits and risks associated with AI, Gensler shared that the SEC is exploring ways to address conflicts of interest stemming from financial firms using AI to optimize systems solely for their own advantage. He is keen on implementing new rules to ensure fairness and transparency in these situations.
Importantly, Gensler highlighted that AI can be a valuable tool for the SEC itself. The technology holds promise in enhancing market surveillance, improving evaluation processes for disclosures, and bolstering overall economic analysis performed by the agency.
As stakeholders across various sectors navigate the ever-evolving landscape of AI, it is evident that both responsible usage and regulatory measures are imperative to harness its potential for societal benefit while mitigating risks.