Expensive Mr. Kirkpatrick:

The U.S. Chamber of Commerce (the “Chamber”) writes to offer our feedback on the Commodity Futures Buying and selling Fee (“CFTC”) Request for Remark (“Request”) concerning the usage of synthetic intelligence (“AI”) in markets regulated by the CFTC. The Chamber appreciates the CFTC soliciting views from the general public in regards to the evolving nature of AI and the implications of AI use within the monetary markets.

As a threshold matter, it’s vital for the CFTC and different regulators to acknowledge that regulated entities have been utilizing AI expertise in numerous capacities for many years. Lots of the questions surrounding AI – and issues over dangers expressed by authorities authorities – have been pushed by the more moderen proliferation of generative AI. The Chamber believes it’s critical that any initiatives to deal with AI by means of formal laws or regulatory steering mustn’t inappropriately disincentivize the usage of a expertise that has been effectively and appropriately deployed by many regulated entities for years.

The Chamber has been a number one voice and an lively participant in public coverage discourse concerning the regulatory therapy of AI. In 2022, the Chamber shaped the Fee on Synthetic Intelligence, Competitiveness, Inclusion, and Innovation (“Fee”). This unbiased Fee, chaired by former Representatives John Delaney and Mike Ferguson and composed of teachers, enterprise leaders, ethicists, and technological leaders, met with consultants of various opinions all through the US, European Union, and the UK. The Fee’s report and suggestions have been a cumulation of over 14 months of labor and have been launched in March 2023.

The Fee offered coverage suggestions on the 4 key coverage areas of regulation, workforce, international competitiveness, and nationwide protection. Related to the present CFTC Request, the Fee identified that many AI actions are already coated by current legal guidelines and laws. The Fee suggested policymakers to take a gap-filling, risk-based strategy when addressing regulatory uncertainty round AI and to deal with 5 pillars for regulation: effectivity, neutrality, proportionality, collegiality, and adaptability.

Present CFTC guidelines and laws already set forth a complete regulatory scheme that’s expertise impartial. This regulatory framework has efficiently tailored to many new applied sciences through the years. Any future regulation ought to be primarily based on a clearly recognized want, considering current necessities. On this regard, the CFTC’s oversight and regulation of AI in CFTC regulated markets ought to proceed to deal with the end result, dangers, and real-world software of the usage of AI – somewhat than the expertise itself. The CFTC must also use warning when searching for to undertake a definition of AI for regulatory functions. A definition that’s too broad dangers encompassing different applied sciences that would not have the identical danger profile as sure AI functions. But, a definition that’s too slender will doubtless turn out to be out of date over time as AI continues to develop as a expertise. Once more, the main target by the CFTC and different businesses ought to be on outcomes and whether or not markets stay environment friendly or issues resembling fraud will be adequately addressed – whatever the underlying applied sciences deployed by regulated entities.

We encourage the CFTC to convene public roundtables to make sure there’s a strong dialogue between business and regulators surrounding the usage of AI expertise. Such dialogue is crucial to offer readability for all events on points and issues which can should be addressed.

Learn the total letter right here