Technology News Today TheFoxPosts.com

Rapid adoption of artificial intelligence (AI) could create new risks for the US financial system if the technology is not properly supervised, a panel of regulators warned on Thursday. The Financial Stability Oversight Council, which comprises top financial regulators and is chaired by Treasury Secretary Janet Yellen, flagged the risks posed by AI for the first time in its annual financial stability report.  While the group said AI could spur innovation or efficiencies at financial firms like banks, the rapidly advancing technology requires vigilance from both the companies and their watchdogs. "AI can introduce certain risks, including safety and soundness risks like cyber and model risks," the group said in its annual report published Thursday, adding it recommended firms and their regulators "deepen expertise and capacity to monitor AI innovation and usage and identify emerging risks." The panel also flagged the growing role of no NBA nks and ...

SEOL: The head of the International Monetary Fund (IMF) said on Thursday that crypto currencies need to be regulated because they pose risks to financial stability. "The challenge is that high crypto asset adoption could undermine macro-financial stability," the IMF's managing director, Kristalina Georgieva, said in her opening speech at a conference in Seoul on digital currencies. She said high crypto asset adoption could affect the effectiveness of monetary policy transmission, capital flow management measures and fiscal sustainability due to volatile tax collection. "Our goal is to make a more efficient, interoperable and accessible financial system by providing rules to avoid the risks of crypto, and infrastructure by leveraging some of its technologies," Georgieva said at the joint conference with the South Korean government and central bank. Rules are not meant to "return us to a pre-crypto world, nor to squash innovation," she said. ...

LONDON: Artificial intelligence should improve pension s performance by cutting costs and highlighting upcoming risks , the Mercer CFA Institute's global pension s report said on Tuesday, with the Netherlands in top spot in this year's index. Additional uses for AI could include building customised portfolios and identifying market anomalies, although AI was unlikely to be able to predict market movements with accuracy so uncertainty will remain, the report said. "The ongoing expansion of AI within the operations and decisions of investment managers could lead to more efficient and better-informed decision-making processes, which could potentially lead to higher real investment returns to pension plan members," said David Knox, senior partner at Mercer. The annual survey, which is sponsored by the CFA Institute association of investment professionals in collaboration with Mercer and the Monash Centre for Financial Studies, also pointed to risks of AI models g...

British officials are warning organisations about integrating artificial intelligence-driven chatbots into their businesses, saying that research has increasingly shown that they can be tricked into performing harmful tasks. In a pair of blog posts due to be published Wednesday, Britain's National Cyber Security Centre (NCSC) said that experts had not yet got to grips with the potential security problems tied to algorithms that can generate human-sounding interactions - dubbed large language models, or LLMs. The AI-powered tools are seeing early use as chatbots that some envision displacing not just internet searches but also customer service work and sales calls. The NCSC said that could carry risks , particularly if such models were plugged into other elements organisation's Business processes. Academics and researchers have repeatedly found ways to subvert chatbot s by feeding them rogue commands or fool them into circumventing their own built-in guardrails. For examp...

The United Nations Security Council held its first meeting on artificial intelligence on Tuesday where China said the technology should not become a "runaway horse" and the United States warned against its use to censor or repress people. Britain's Foreign Secretary James Cleverly, who chaired the meeting under Britain's July presidency of the body, said AI will "fundamentally alter every aspect of human life." "We urgently need to shape the global governance of transformative technologies because AI knows no borders," he added after saying that AI could help address climate change and boost economies. But he also warned that the Technology fuels disinformation and could aid both state and non-state actors in a quest for weapons. The 15-member council was briefed by U.N. Secretary-General Antonio Guterres, Jack Clark, co-founder of high-profile AI startup Anthropic, and Professor Zeng Yi, co-director of the China-UK Research Center fo...

OTTAWA, CANADA: Canada on Monday announced a ban on Chinese-owned social media app TikTok from government -issued devices , saying it presents an "unacceptable" level of risk to privacy and security , adding to the growing rift between the two countries. The move underscores the growing lobby against TikTok, owned by Chinese firm ByteDance Ltd, over concerns of its proximity to Beijing and hold over user data across the world. Prime Minister Justin Trudeau told reporters that his government was looking carefully at how to ensure Canadians' online safety. "This may be a first step, it may be the only step we need to take," he said referring to the action against TikTok. As government bans TikTok on work phones, "many Canadians, businesses and private individuals will reflect on the security of their own data and perhaps make choices in consequence," he said. The ban would go into effect from Tuesday and federal employees would also be blocked f...