In a significant nod to the growing role of artificial intelligence (AI) in regulatory oversight, Securities and Exchange Commission (SEC) chairman Gary Gensler revealed that the agency is employing AI tools for market surveillance.
Speaking at a hearing on Tuesday, Gensler stated that AI technology has become instrumental in the SEC's efforts to detect market misconduct and enforce regulatory compliance.
The SEC's use of AI is part of a broader trend of integrating advanced technology into government functions.
Gensler told the Senate oversight committee that the technology is deployed "in some market surveillance and enforcement actions", and is used to identify market patterns. This approach mirrors that of "self-regulatory organisations", which also leverage AI for similar purposes.
Gensler's comments also shed light on the SEC's request for increased funding.
The agency aims to bolster its technological capabilities, thereby enhancing its ability to engage with AI tools for market oversight.
The disclosure comes amid ongoing debates about the ethical and practical implications of AI usage across various sectors, including government. Given the SEC's proactive stance, it is likely that other regulatory bodies will follow suit in adopting AI for governance.