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Politicians and public officials

Gary Gensler

SEC chair at the time

2 records

Portrait source: U.S. Securities and Exchange Commission, Public domain

Records

Thus, if they go offline or they send a signal that everybody relies upon, AI may play a central role in the after-action reports of a future financial crisis.

Gary Gensler

SEC chair at the time

In a 2024 SEC video, Gary Gensler said shared AI models or data sources could play a central role in a future financial crisis if they failed or sent a common signal.

Chair of the U.S. Securities and Exchange CommissionSeptember 19, 2024U.S. Securities and Exchange Commission

SourceArchived
Context and checks

Surrounding words

That brings me back to Samantha and Her. Imagine it wasn't Scarlett Johansson, but it was some base model or some data source on which 8,316 financial institutions were relying. That's what we may face in finance. Thus, if they go offline or they send a signal that everybody relies upon, AI may play a central role in the after-action reports of a future financial crisis. The challenges to financial stability that AI may pose in the future will require a lot of new thinking.

What this quote does not say

  • Gensler framed this as a possible future scenario involving dependence on a small number of upstream models or data aggregators, not as a claim that AI had already caused a financial crisis.

How this was checked

  • Quote matched character-for-character against the captured page.

Reviewed by

an AI reviewer that read the whole source · an automatic character-by-character check

Investor protection requires the humans who deploy a model to put in place appropriate guardrails.

Gary Gensler

SEC chair at the time

In 2024 prepared remarks, Gary Gensler said investor protection requires people deploying AI models in finance to put appropriate guardrails in place.

Chair of the U.S. Securities and Exchange CommissionFebruary 13, 2024Yale Law School

SourceArchived
Context and checks

Surrounding words

That means you need to make sure your robot, I mean AI model, doesn’t do these things. Investor protection requires the humans who deploy a model to put in place appropriate guardrails. Did those guardrails take into account current law and regulation, such as those pertaining to front-running, spoofing, fraud, and providing advice or recommendations? Did they test it before deployment and how?

What this quote does not say

  • The guardrail statement concerned people deploying AI models in finance and was tied to existing securities-law duties involving fraud, manipulation, advice, testing, monitoring, and governance; it was not a general rule for every AI deployment.

How this was checked

  • Quote matched character-for-character against the captured page.

Reviewed by

an AI reviewer that read the whole source · an automatic character-by-character check