Treasury Secretary Janet Yellen is set to deliver a significant warning about the implications of artificial intelligence (AI) on financial systems. In her upcoming speech, Yellen will address the rapid advancements in AI technology, highlighting the competitive landscape between tech companies and Wall Street firms that are increasingly adopting AI. Regulators are faced with the challenge of keeping pace with these developments and mitigating potential risks.
Yellen's speech, scheduled for a conference in Washington, will mark her most extensive commentary on AI to date. She plans to emphasize the vast opportunities and notable risks associated with the integration of AI in financial institutions. One key concern she will address is the 'black box problem,' where the inner workings of AI models remain opaque, posing uncertainties about their safety and impact on the financial system.
