Commissioner Kristin N. Johnson, a Commissioner at the Commodity Futures Trading Commission (CFTC), delivered keynote remarks at the NYU AI Convening on the integration of AI in financial markets. Johnson emphasized the potential benefits and risks associated with AI in financial markets, stating, "While the use of AI in financial markets may hold the potential for substantial benefits, such use may also introduce unprecedented risks concerning market integrity, customer protection, governance, data privacy, bias, and cyber threats."
Johnson highlighted her advocacy for responsible use of AI in financial markets, stating, "I have advocated for interventions that foster responsible use of AI in financial markets, and will continue to do so." She also stressed the importance of transparency regarding the use of AI, mentioning, "I have encouraged greater visibility and transparency regarding our registrants’ use of AI by expanding our annual systems examination questionnaire to incorporate questions that directly inquire about the adoption of AI and related risks."
Additionally, Johnson proposed the development of a principles-based framework and advocated for the introduction of heightened penalties for intentional misuse of AI in financial markets. She stated, "I have proposed the development of a principles-based framework" and "I have advocated for the Commission to consider introducing heightened penalties for those who intentionally use AI technologies to engage in fraud, market manipulation, or the evasion of our regulations."
In conclusion, Johnson expressed gratitude to the organizers of the event and emphasized her commitment to promoting the responsible and ethical use of AI in financial markets.
