Good morning. Thank you, Commissioner Goldsmith Romero, for convening this meeting of the Technology Advisory Committee (TAC). Over the past year, you and the TAC have really been leading the way at the CFTC on the issue of artificial intelligence (AI), and I look forward to the continuation of those efforts. I also want to recognize the TAC Designated Federal Officer, Anthony Biagioli, the Alternate Designated Federal Officers, Ben Rankin and Drew Rodgers, the CFTC staff, and everyone who worked to make today’s meeting possible. And of course, thank you to the committee members for taking time away from your day jobs to share your expertise and provide the CFTC with valuable insight into advancements in technology.

While AI has recently dominated the news and policy agendas around the world, especially with the development of generative AI, the financial services industry has been using various iterations of AI for years to improve automation and efficiency under the supervision of prudential and other regulators. At last July’s TAC meeting, I spoke about the importance of utilizing existing risk governance frameworks and risk management disciplines to identify, measure, monitor, and control emerging risks and new technologies[1]. One example is operational risk management, which includes technology risk, cyber risk, and third-party risk. I believe that model risk management is key for AI risk governance, and that one way to approach appropriate safeguards for the deployment of AI in trading and markets is by looking to the existing approach to risks and controls in algorithmic trading.

I look forward to the presentation of the TAC’s Emerging and Evolving Technologies Subcommittee Report Regarding Responsible AI in Financial Markets, and to the presentations by our colleagues at the Federal Reserve, U.S. Department of the Treasury, and the National Institute of Standards and Technology (NIST) on their current AI initiatives. I’m pleased that our partners at the National Futures Association (NFA) will be sharing their expertise with us, as well as leaders from the private sector.

Thank you, Commissioner Goldsmith Romero, and to the members for your service on this committee. I look forward to today’s discussion on artificial intelligence in regulated financial services.