‘Black box’ models present challenges – US regulators

US officials say they have some powers to assess AI tools, but resourcing is problematic

Artificial intelligence

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

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