- SEC Chair Gary Gensler used pop culture examples like the movie Her to illustrate potential risks of underregulated AI systems in finance.
- Gensler referenced older sci-fi movies about AI to argue that concerns about advanced AI are longstanding, though safeguards are still lacking.
- As AI disclosures increase, Gensler says securities laws still apply and claims about AI need a reasonable basis to inform investors.
SEC Chair Gary Gensler recently gave a speech on artificial intelligence at Yale Law School, using pop culture references to illustrate AI’s potential impact. Though AI has advanced rapidly in recent years, Gensler reached back over a decade to find relatable examples for his audience.
Looking to Science Fiction for Insight
Gensler highlighted the 2013 film Her, starring Joaquin Phoenix and Scarlett Johansson. In the movie, Johansson voices an advanced AI system that Phoenix’s character falls in love with. Gensler suggested this fictional scenario could represent risks that arise if financial institutions become overreliant on AI models. He warned that underregulated AI could play a central role in precipitating another financial crisis.
The Long History of AI in Movies
To further illustrate his points, Gensler referenced several older movies about AI, going back to the 1980s. He argued these examples showcase that fears about advanced AI are not new. However, Gensler asserted that appropriate safeguards have not yet been established for AI systems that may be deployed in finance.
The Role of the SEC
As AI disclosures by companies under the SEC’s purview increase, Gensler emphasized that securities laws still apply. He stated investor protections necessitate that claims about AI prospects have a reasonable basis made clear to the public. Though Gensler has often criticized crypto, he believes AI could potentially help the SEC’s enforcement capabilities.
Conclusion
Gensler contends the widespread adoption of AI in finance requires thoughtful regulation to avert crisis. By referencing pop culture depictions spanning decades, he aimed to contextualize modern AI developments for his audience. Gensler faces the ongoing challenge of balancing innovation and stability as advanced technologies reshape finance.
