‘Black box’ models present challenges – US regulators

US officials say they have some powers to assess AI tools, but resources are a problem

machine-learning-trendline

Regulators in the US are struggling to determine how best to handle the growing use of artificial intelligence in designing financial strategies, with skills shortages a particular concern.

John Schindler, an associate director in the Federal Reserve’s financial stability department, said most regulators could make relatively intrusive demands when supervising firms, including asking them to turn over the code behind their models. But few have the resources to go line-by-line through “1,000

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here