AI: the common-sense approach

Summary

• AI is not new. It has existed for approximately eighty years and has been used in financial services for decades. Gen AI is just the most recent form of AI.
• The WFE is encouraged to see the CFTC taking a careful, considered approach to understanding the benefits, risks, and uses of AI within the financial services sector.
• AI has a significant number of potential use cases that could bring efficiency gains, lower costs, increase productivity, generate revenues, and benefit the market as a whole.
• Our members generally see AI use cases in three broad categories:
  • 1) individual productivity, 2) operational efficiency and 3) new products.
• The use of AI has also created specific risks that financial institutions must address. However, financial institutions and authorities must be clear on those specific risks and develop mitigation strategies to address these risks where possible.
• The risk mitigation of AI in financial services is currently being executed through existing risk management frameworks. However, our members are further developing or using governance frameworks, training programmes, risk management protocols etc. around the use of AI.

Read our full response here.

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