Dear Mr. Kirkpatrick:
The U.S. Chamber of Commerce (the “Chamber”) writes to provide our comments on the Commodity Futures Trading Commission (“CFTC”) Request for Comment (“Request”) regarding the use of artificial intelligence (“AI”) in markets regulated by the CFTC. The Chamber appreciates the CFTC soliciting views from the public about the evolving nature of AI and the implications of AI use in the financial markets.
As a threshold matter, it is critical for the CFTC and other regulators to recognize that regulated entities have been using AI technology in different capacities for decades. Many of the questions surrounding AI – and concerns over risks expressed by government authorities – have been driven by the more recent proliferation of generative AI. The Chamber believes it is vital that any initiatives to address AI through formal regulations or regulatory guidance should not inappropriately disincentivize the use of a technology that has been efficiently and appropriately deployed by many regulated entities for years.
The Chamber has been a leading voice and an active participant in public policy discourse regarding the regulatory treatment of AI. In 2022, the Chamber formed the Commission on Artificial Intelligence, Competitiveness, Inclusion, and Innovation (“Commission”). This independent Commission, chaired by former Representatives John Delaney and Mike Ferguson and composed of academics, business leaders, ethicists, and technological leaders, met with experts of varying opinions throughout the United States, European Union, and the United Kingdom. The Commission’s report and recommendations were a cumulation of over 14 months of work and were released in March 2023.
The Commission provided policy recommendations on the four key policy areas of regulation, workforce, global competitiveness, and national defense. Relevant to the current CFTC Request, the Commission pointed out that many AI activities are already covered by existing laws and regulations. The Commission advised policymakers to take a gap-filling, risk-based approach when addressing regulatory uncertainty around AI and to focus on five pillars for regulation: efficiency, neutrality, proportionality, collegiality, and flexibility.
Current CFTC rules and regulations already set forth a comprehensive regulatory scheme that is technology neutral. This regulatory framework has successfully adapted to many new technologies over the years. Any future regulation should be based on a clearly identified need, taking into account existing requirements. In this regard, the CFTC’s oversight and regulation of AI in CFTC regulated markets should continue to focus on the outcome, risks, and real-world application of the use of AI – rather than the technology itself. The CFTC should also use caution when seeking to adopt a definition of AI for regulatory purposes. A definition that is too broad risks encompassing other technologies that do not have the same risk profile as certain AI applications. Yet, a definition that is too narrow will likely become obsolete over time as AI continues to develop as a technology. Again, the focus by the CFTC and other agencies should be on outcomes and whether markets remain efficient or problems such as fraud can be adequately addressed – regardless of the underlying technologies deployed by regulated entities.
We encourage the CFTC to convene public roundtables to ensure there is a robust dialogue between industry and regulators surrounding the use of AI technology. Such dialogue is essential to provide clarity for all parties on issues and matters which may need to be addressed.
Read the full letter here
