SEC Chairman Gary Gensler spoke to the US Senate in mid-September about the work of the US Securities and Exchange Commission. It also covered the topic of “artificial intelligence” and how the SEC uses the new technology.
• SEC CEO Gary Gensler spoke to the US Senate about AI
• SEC is already using AI to detect fraud in the market
• Greater use of AI planned, more financial resources required
One of the tasks of the US Securities and Exchange Commission (SEC) is to detect and punish fraudulent activities in the US financial market. According to “Coinspeaker”, Gary Gensler, the head of the authority, had already argued in July for relying on artificial intelligence (AI). “We at the SEC could also benefit from staff relying more heavily on AI in their market surveillance, disclosure review, investigations, enforcement and economic analysis,” said the SEC Chairman, while also emphasizing that they are aware of the challenges involved aware of the new technology. Now, on September 12th, during Gensler’s hearing before the US Senate, it became known that the Securities and Exchange Commission is already using AI in some areas.
This is how the SEC uses artificial intelligence to monitor the financial market
Gary Gensler testified before the US Senate in mid-September on various topics. In addition to the cryptocurrency market, the SEC’s handling of artificial intelligence was also discussed. When asked by a senator how Gensler envisions the agency using AI, the SEC chief replied, according to Cointelegraph, that the technology is already being used in market surveillance and some enforcement initiatives “to look for patterns in the market “. The chairman of the US Securities and Exchange Commission did not become more specific, but it can be assumed that the SEC relies on algorithms with machine learning to find signs of fraud or manipulation in the market. Such systems can analyze large amounts of data to find unusual data or deviations from a pattern.
SEC wants to rely even more on AI
Gensler also did not provide any information about previous successes in the use of AI at the SEC. However, it is fair to assume that the use of the technology to date has yielded some promising results. Gensler confirmed before the Senate that the stock exchange supervisory authority needs more money in the coming year – among other things, to further expand the use of new technologies such as AI. The use of AI is “one of the reasons why we asked Congress this year for more funding for 2024 to increase our technology budget for new technologies,” said the SEC boss, according to Cointelegraph.
Editorial team finanzen.net