CFTC TAC Advances Recommendations to CFTC on Responsible AI in Financial Markets
Summary
On May 2, 2024, the CFTC Technology Advisory Committee (TAC) released a Report on Responsible AI in Financial Markets. The goal of this report was to facilitate an understanding of the impact and implications of the evolution of AI on financial markets. The TAC made five recommendations in the report:
• The CFTC should host a public roundtable discussion and engage in outreach to seek guidance on AI’s involvement within the sector.
• The CFTC should consider the definition and adoption of an AI Risk Management Framework (RMF) for the sector to assess the efficiency of AI models and consumer harms.
• The CFTC should create an inventory of existing AI regulations in the sector and analyze existing gaps to create further guidance.
• The CFTC should strive to align their AI policies with other federal agencies, such as the Securities and Exchange Commission and the Department of the Treasury.
• The CFTC should engage staff in dialogues surrounding AI and, where possible, supplement budgets to build sufficient capacity to support the agency’s endeavors in AI.
