The tech industries' concerns with AI are nothing new, although other sectors are shining a light on other issues that may arise with the fast progression of artificial intelligence. The US Securities and Exchange Commission is wary of the effects of AI on the financial sector.
SEC Worried About Use of AI
One of the main uses of AI, according to its developers, is to make our lives easier by providing more streamlined processes. This, however, can lead to an overreliance on institutions which can lead to disastrous outcomes.
SEC Chair Gary Gensler stated that the demand for such technology might mean that only a few tech platforms could dominate the field, as mentioned in The Verge, which means that only a few models can be used by companies.
It might look like an issue with having too much power between the few companies that offer AI tools, but the issue lies in the possibility that having a few AI models to use means that companies will use the same inaccurate information should the AI tools provide flawed data.
In Gensler's words, "AI might heighten financial fragility as it could promote herding ith individual actors making similar decisions because they are getting the same signal from a base model or data aggregator."
This could lead to a financial crisis, such as the event in 2008 when banks based their decisions on the information provided by credit raters. The situation is a good example of how companies following a few mistaken advisors could blow out of proportion.
Artificial intelligence has been used in the financial sector for a while. As reported, insurance firms and creditors have used a to take a quicker scan through financial data before making a decision on loans. This has also been used to detect fraudsters faster than manually searching.
The development of the technology has been on the rise, but there are still not enough companies that create appropriate models to have enough variation, avoiding the circumstance the SEC is worried about. With that in mind, it might take a few more years before that happens.
AI Roles in Other Fields
Even if it might not be ready for some roles, there are others where AI already excels in its responsibilities. For example, AI has been used to provide consumers with online retailers by using their purchase histories to curate recommendations.
Chatbots are also powered by AI models, which can offer 24/7 services to those who have inquiries, whether it's for retail or travel. Some destinations, while attended by human workers, can have chatbots that can answer the simple questions the customers might have at any time.
As it does with shopping recommendations, AI can also be used for content recommendations. Social media platforms use algorithms for such tasks as well as streaming services, which can enhance user experience and engagement, as pointed out by Leeway Hertz.
It might still be ethically ambiguous right now, especially with the Writer's Strike still at hand, but generative AI can be used to assist with the entertainment industry as well. There are still issues to iron out where human workers' jobs would not be affected.
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