SEC’s Gary Gensler believes AI can strengthen its enforcement regime

Gary Gensler, the chair of the United States Securities and Exchange Commission, believes staff at its agency could benefit from greater use of artificial intelligence.

During a July 17 speech before the National Press Club, where he later

Gensler added that conflicts of interest could arise when AI systems are trained to take into account the interests of the company as opposed to the interests of the customer. He added:

“That’s why I’ve asked SEC staff to make recommendations for rule proposals for the Commission’s consideration regarding how best to address such potential conflicts across the range of investor interactions.”

He also believes the emergence of a few AI monopolies may shake up the economy and potentially play a role in a “future financial crisis.”

Read my full remarks from @PressClubDC‘s Headliners Luncheon:

— Gary Gensler (@GaryGensler) July 17, 2023

In a follow up interview with Yahoo Finance on July 17, Gensler said that the regulator will enforce action against culprits who use AI to defraud investors:

“Fraud is fraud. If a bad actor uses artificial intelligence to try to deceive the public, we’re authorized but also mandated by Congress to go after that,” he said.

“AI is already very much embedded in our capital markets,” SEC Chair @GaryGensler says, later adding: “These are rapidly changing times.” pic.twitter.com/i0xuBNO2WE

— Yahoo Finance (@YahooFinance) July 17, 2023