April 20 (Reuters) – The Federal Reserve has “common discussions” with the banks it supervises about managing the dangers related to synthetic intelligence, as extra monetary establishments make the most of AI for customer support functions, fraud monitoring and underwriting, a high official on the U.S. central financial institution mentioned on Thursday.
In ready remarks, Fed Governor Christopher Waller cautioned that though AI may deliver new efficiencies to financial institution processes, it additionally includes novel dangers, together with difficulties detecting issues or biases in massive datasets.
Waller additionally mentioned that so-called good contracts – or self-executing transactions on the blockchain whose outcomes rely on pre-programmed inputs — may maintain “appreciable promise” to modernize transaction settlements. Nonetheless, he famous that good contracts additionally pose dangers, resembling cyber vulnerabilities and bugs.
Reporting by Ann Saphir and Hannah Lang; Enhancing by Andrea Ricci
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