Rule-changers, by AI

Rule-changers, by AI
(Image: Getty)
David Chaplin
It’s an unwritten rule of financial markets that regulators always lag industry and fraudsters in the technology race. Now, in the age of artificial intelligence (AI), it’s a written rule as laid down by the International Organization of Securities Commissions (Iosco) in a new report.“Regulators and others have limited understanding of how AI models work, what they a capable of, and what their impacts may be,” Iosco consultation paper says.“If regulated firms use complex and opaque datasets, models, and system...

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