Hsu also highlighted the growing risks of AI being used for fraudulent purposes and cyberattacks. He expressed concern over AI-generated disinformation and its potential to amplify financial system vulnerabilities. Hsu referenced a hypothetical scenario where an AI-powered trading agent could manipulate markets by spreading false information to maximize returns, a situation he finds disturbingly plausible.
Overall, the Treasury’s inquiry aims to facilitate responsible AI use in financial services while addressing potential threats to financial stability, ensuring a balanced approach to innovation and regulation.
