The report highlights that institutions face difficulties in effectively explaining or monitoring specific AI tools due to their highly technical and complex nature. These challenges arise from the intricate functionalities and processes involved in these tools. As a result, institutions struggle to provide clear explanations or oversight of these AI tools. This lack of transparency and monitoring capability can hinder the proper understanding and management of AI systems, potentially leading to unintended consequences or misuse. Therefore, addressing these challenges is crucial for institutions to ensure responsible and accountable use of AI technology.
HomeDIGITAL ASSETS REGULATORYworldwide-stablecoinUS financial regulators’ annual report warns of AI risks