The rapid development of Artificial Intelligence (AI) technology and its use cases are being noticed by a range of stakeholders. This includes various regulators and government authorities, like the US Department of the Treasury.
The Treasury has released a request for information on how AI can be utilised in the US finance sector, where it is already implemented extensively across various functions. Treasury researchers hope to uncover information and opinions about the opportunities and risks of AI use.
This information will be used to build on the Treasury’s work in cybersecurity and fraud prevention, as well as initiatives by other federal agencies. AI is used across a range of disciplines in financial services, but fraud prevention, security and anti-money laundering (AML) are some areas which have come to the forefront.
US Under Secretary for Domestic Finance, Nellie Liang, said: “Treasury is proud to be playing a key role in spurring responsible innovation, especially in relation to AI and financial institutions.
“Our ongoing stakeholder engagement allows us to improve our understanding of AI in financial services. The Biden Administration is committed to fostering innovation in the financial sector while ensuring that we protect consumers, investors, and our financial system from risks that new technologies pose.”
US authorities have become increasingly aware of the possibilities of AI, with the US being home to some leading companies active in the sector – Nvidia, Microsoft, Google, and ChatGPT developer OpenAi being some of the most notable examples, among many others.
This has seen the government embark on both domestic and international efforts to better understand and implement AI. These efforts include the launch of an AI Safety Institute, which is working cross-border with its UK counterpart.
AI’s potential in finance is being investigated and observed by a range of financial stakeholders, ING and Deutsche Bank noted the tech’s potential at Money20/20 this week, whilst JP Morgan Chase CEO, Jamie Dimon, has described the tech as having huge potential for finance and banking.
Areas the Treasury is seeking clarity on include obstacles for responsible use of AI and potential impacts on consumers, investors, financial institutions, businesses, regulators, end-users and other entities.
The department is also seeking recommendations for enhancements to legislative, regulatory and supervisory frameworks. The Treasury has opened its consultation to any member of the general public, seeking a broad range of perspectives.
