In a September speech delivered at a conference organised by the National Bureau of Economic Research in Toronto, Governor Lisa D. Cook, a member of the US Federal Reserve Board of governors, highlighted the potential and challenges of generative AI.
Cook said she acknowledged the transformative capabilities of generative AI in various sectors, emphasising its role in creating content, designs, and software. However, alongside its potential, she went on to highlight the risks associated with the technology. One of the primary concerns is the ability of generative AI to produce misleading or false information, which can have significant implications, especially in the financial sector.
Commenting on the role of regulators in the oversight of generative AI, Cook said: “Policymakers, too, at all levels of government, will have to confront the changing world. Importantly, in the policy arena—as well as health care, consumer finance, insurance, and many others—decision makers have legal and ethical duties to be deliberate about the effects their choices have on affected groups. In this context, an AI black box with no insight into the decision-making process is of limited value.”
“As a policymaker, I look upon model-generated forecasts with a sceptical eye, if they are not coupled with a plausible explanation for the driving factors behind them … So I am particularly interested in seeing progress on “explainable AI,” which may help bridge the divide between the technical sphere and the user”.
[Image Source: Federal Reserve]
