Washington, D.C. — The Commodity Futures Trading Commission’s Technology Advisory Committee (TAC), sponsored by Commissioner Christy Goldsmith Romero, recently released a Report on Responsible AI in Financial Markets. The TAC, comprised of esteemed experts in AI, made five recommendations to the Commission on how to approach the evolving landscape of AI in financial markets.

Commissioner Goldsmith Romero praised the Committee's approach and emphasized the importance of responsible AI practices in safeguarding financial markets. She highlighted the significance of transparency and oversight in ensuring the integrity of AI systems. The Commissioner expressed gratitude towards the subcommittee responsible for drafting the report and underscored the potential impact of the recommendations on the financial services industry and regulators.

The Committee's findings underscored the critical need for industry engagement and regulatory guardrails to prevent vulnerabilities in financial markets arising from AI applications. The report highlighted the significant impact of AI in various financial functions, such as risk management, fraud detection, and predictive analytics. However, it also warned about potential risks, including biases in AI models and market instabilities caused by misguided training data or bad actors.

The Technology Advisory Committee stressed the importance of responsible AI practices, outlining five key properties that define such systems: fairness, robustness, transparency, explainability, and privacy. These principles aim to ensure that AI models are designed and deployed ethically, with a focus on protecting users' personal information and maintaining trust in AI technologies.

Furthermore, the Committee recommended the development of a governance framework to support safe and trustworthy AI systems in financial markets. This framework would establish guidelines for the responsible use of AI, including considerations for data privacy, human involvement in decision-making, and compliance with regulatory requirements.

The Technology Advisory Committee's report serves as a crucial step towards addressing the challenges and opportunities presented by AI in financial markets. By advocating for responsible AI practices and regulatory oversight, the Committee aims to foster a more secure and transparent environment for the integration of AI technologies in the financial industry.