IMPORTANT POINTS:
- Gary Gensler noted that the technology looks for patterns in the market similar to self-regulatory organizations.
- The SEC is using artificial intelligence to monitor financial markets for misconduct.
- The prevalence of AI is a key reason behind the SEC’s request for increased funding from Congress.
The prevalence of artificial technology has undoubtedly been one of the big stories of 2023. The emergence of OpenAI’s ChatGPT has catapulted generative artificial intelligence and similar technologies into the mainstream. However, it’s not just tech companies that are taking advantage of these tools. The United States Securities and Exchange Commission (SEC) is actively incorporating artificial intelligence into its operations.
The use of AI in the SEC
Speaking today, Chairman Gary Gensler stated that the SEC is using artificial intelligence to monitor financial markets for different forms of misconduct. Specifically, Gensler indicated that the technology is currently used “in some market surveillance and law enforcement actions.”
In a hearing today, Gensler highlighted that the prevalence of artificial intelligence is a key reason behind the SEC’s request for more funding from Congress. The agency has decided to use the technology to evaluate market patterns that could be related to misconduct.
He revealed that technology has been a key surveillance tool in the agency’s observations and subsequent actions.
On the other hand, Gensler said the technology is used “to look for patterns in the market,” similar to “self-regulatory organizations” that also use it.
Additionally, Gensler pointed to artificial intelligence (AI) as the reason behind the request for increased funding for the SEC. Specifically, he expressed that the agency wants to strengthen its technological presence. Therefore, it seeks to increase its ability to interact with these types of tools.
The use of artificial intelligence in various sectors has been the subject of much debate. However, its use in government activities was only a matter of time. Considering the SEC’s response, they are likely not alone in adopting this technology.
