United States Securities and Exchange Commission (SEC) Chair Gary Gensler testified on Sept. 12 in a Senate oversight hearing that his agency was currently using artificial intelligence (AI) technologies to monitor the financial sector for signs of fraud and manipulation.\u00a0<\/p>\n
https:\/\/www.youtube.com\/embed\/YjfQ6c9N6-M<\/p>\n
Gensler gave a public speech before the National Press Club on July 17 wherein he laid out the case for integrating AI technologies into the SEC\u2019s surveillance scheme, but until now, the agency\u2019s explicit use of the tech hadn\u2019t been made public knowledge.<\/p>\n
When asked by Sen. Catherine Cortez Masto how he envisioned the SEC using AI, Gensler responded:<\/p>\n
\u201cSo, we already do. In some market surveillance and enforcement actions. To look for patterns in the market. \u2026 It\u2019s one of the reasons why we\u2019ve asked Congress for greater funding this year, in 2024, to help build up our technology budget for the emerging technologies.\u201d<\/p><\/blockquote>\n
While it shouldn\u2019t come as a surprise to note that the SEC is utilizing AI technologies during the normal course of its operations, it is somewhat surprising that the agency hasn\u2019t issued a formal, public declaration detailing its use. <\/p>\n
However, it is worth noting that aside from the requirement to report cybersecurity incidents signed into law by President Biden in March of 2022, there don\u2019t appear to be any legal requirements in the U.S. for agencies to publicly report the internal use of new technologies. <\/p>\n