As artificial intelligence (AI) tools continue to transform our everyday lives, 'narrowcasting' is emerging as a key topic of discussion and concern, as highlighted by Gary Gensler, chairman of the US Securities and Exchange Commission (SEC).
In an AI context, narrowcasting refers to AI's unique ability to predict individual behaviour as it leverages pattern recognition and data processing to deliver personalised communications, product offerings and pricing at scale.
"Today’s AI-based models provide an increasing ability to make predictions about each of us as individuals," Gensler said.
"This growing capability facilitates being able to differentially communicate to each of us — and do so efficiently at scale."
Read my full remarks from @PressClubDC's Headliners Luncheon:
— Gary Gensler (@GaryGensler) July 17, 2023
Potential challenges
While Gensler lauded the potential benefits of narrowcasting, such as improved user experience and increased financial inclusivity, he also shed light on the challenges that arise.
"Models have been developed to assist in making decisions about who gets jobs, loans, credit, entry to schools and healthcare, to name a few," he stated.
"This raises a host of issues that are not necessarily new to AI but are accentuated by it.
“The lack of transparency in AI models could potentially mask systemic biases or discriminatory practices.
"AI models’ decisions and outcomes often are unexplainable. Thus, the insights that come out of such models by design are inherently challenging to interpret in terms of accessibility to humans."
Risk of fraud and deception
Gensler also highlighted the heightened risk of fraud and deception with the advent of narrowcasting, he added: "Bad actors have found new ways to deceive the public.
“With AI, fraudsters have a new tool to exploit.
“They may try to do it in a narrowcasting way, zeroing in on our personal vulnerabilities."
Urged regulatory framework
Given these challenges, the SEC chairman urged for the development of comprehensive regulatory frameworks to protect against these risks, whilst reaping the benefits of AI-driven narrowcasting.
"The SEC is focused on identifying and prosecuting any form of fraud that might threaten investors, capital formation, or the markets more broadly," he stated.
The main objective would be to balance the benefits of AI-driven narrowcasting, such as increased efficiency and inclusivity, with the need to ensure fairness, transparency and protection against fraud.
To conclude, while AI's ability to 'narrowcast' presents significant opportunities, it also raises new challenges for regulatory bodies and society at large.