Wall Street Cops Behind in AI Oversight

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REGULATION Wall Street Regulators Behind in AI Oversight: Senate Report

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Wall Street’s main regulators are behind in overseeing how hedge funds are using artificial intelligence to make investment decisions, creating a potential threat to financial stability, according to a recent Senate report.

The report, directed by U.S. Senator Gary Peters (D-MI), warned that current rules and recent regulatory actions are insufficient in addressing the evolving uses of AI by hedge funds.

The report obtained information from six different hedge funds and how they’re using AI to invest. The report found that there was no consensus on when a human needs to intervene in, how risks are classified and how various terms are defined. Some hedge funds …