The Commodity Futures Trading Commission’s (CFTC) Technology Advisory Committee (TAC) has made five recommendations as to how the CFTC should handle AI responsibily in order to safeguard financial markets.
The TAC defined responsible AI with five typical properties which speak to how AI models are designed and deployed: Fairness, robustness, transparency, explainability, and privacy.
The TAC report recommends that: The CFTC should host a public roundtable discussion with industry to understand the types of AI technologies most prevalent within the sector; the CFTC should consider the definition and adoption of an AI Risk Management Framework (RMF) for the sector; the CFTC should create an inventory of existing regulations related to AI in the sector and use it to develop a gap analysis of the potential risks associated with AI systems; the CFTC should establish a process to gain alignment of their AI policies and practices with other federal agencies; and the CFTC should work toward engaging staff as both observers and potential participants in ongoing domestic and international dialogues around AI.
TAC chair Christy Romero said: “Given the collective decades of AI experience of committee members, their findings regarding the need for responsible AI practices, as well as the importance of the role of humans, governance, data quality, data privacy, and risk-management frameworks targeting AI-specific risks, should be taken seriously by the financial services industry and regulators.
“These expert recommendations are geared towards more responsible AI systems with greater transparency and oversight to safeguard financial markets.”
The TAC was created in 1999 to advise the CFTC on complex issues at the intersection of technology, law, policy, and finance.
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