SEC's Gary Gensler thinks AI can bolster its enforcement regime

Gensler highlighted market surveillance and three other use cases that securities regulatory personnel could benefit from using enhanced AI.

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Gary Gensler, chairman of the U.S. Securities and Exchange Commission, believes his agency's staff could benefit from greater use of artificial intelligence.

During a July 17 speech to the National Press Club, where he later broke his silence on Ripple's recent court ruling, Gensler listed several potential use cases for AI that could help the regulator in its role as securities watchdog.

"We at the SEC could also benefit from greater use of AI by staff in market surveillance, disclosure review, reviews, enforcement, and economic analysis. ", he said.

SEC Chairman Gensler in front of the National Press Club on July 17. Source: SEC

The SEC hit at least 54 cryptocurrency companies with enforcement actions between 2018 and the first half of 2023. The Collapse of FTX in November was followed by a dramatic rise in the rate of these stocks.

While Gensler didn't provide further details on how the agency might use AI, the SEC chairman did praise the technology and the positive impact it can have on humanity in financial markets:

“AI opens up immense opportunities for humanity, from healthcare to science to finance. As machines adopt pattern recognition, especially when performed at scale, this can create great efficiencies across the economy."