FINRA executives highlighted risks firms face with generative AI and large language models and how FINRA is approaching these challenges.
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House Financial Services Committee Chair, Patrick McHenry (R-NC) reintroduced a bill to "promote innovation in financial services" by establishing Financial Services Innovation Offices (FSIO) across various agencies.
SEC Chair Gary Gensler warned of broad challenges and increased risk resulting from the use of AI models in the financial sector. He highlighted the need to update regulatory guidelines, establish strict oversight mechanisms and enhance disclosure requirements for companies utilizing AI.
House Financial Services Committee Chair Patrick McHenry asked the FDIC to explain its financial innovation strategy as well as the agency's examination and supervisory actions toward financial institutions and fintechs.
The White House announced that federal agencies completed their ninety day directives set out in President Joseph R. Biden's "Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence."