CFTC Staff Takes a “Measured First Step” in Artificial Intelligence

In this article:

• The Commodity Futures Trading Commission (CFTC) has issued a staff advisory on the use of artificial intelligence (AI) by CFTC-regulated entities.
• The advisory does not create new compliance obligations but reminds entities that they must continue to comply with existing regulations when using AI.
• The advisory highlights various use cases for AI, such as order processing, market surveillance, and system safeguards, and explains how existing regulations may apply to these use cases.
• The CFTC expects all regulated entities to assess the risks of using AI and update their policies, procedures, controls, and systems accordingly.
• The advisory also notes that the CFTC may issue further guidance or rulemaking as AI technology evolves and new use cases emerge.