The Financial Supervisory Commission (FSC) yesterday asked local banks and financial services providers to closely monitor their use of artificial intelligence (AI) tools such as ChatGPT, to protect data security.
The FSC told the Bankers’ Association (銀行公會) to investigate how many banks are using AI tools, how they use them and whether they have set risk controls, and to complete the review in two months.
Meanwhile, the Securities and Futures Bureau said it would investigate whether local securities companies have incorporated AI tools into their services, bureau Deputy Director Kao Ching-ping (高晶萍) told the Taipei Times by telephone yesterday.
Photo: CNA
Lawmakers on Thursday questioned whether the FSC was aware of the potential hazards involved in the use of large-language models, commonly referred to as AI.
No foreign financial regulator has taken a clear stance on the issue, although the Hong Kong Monetary Authority said the issue would eventually be discussed by international agencies, such as the Bank for International Settlements, FSC Chairman Thomas Huang (黃天牧) told legislators.
The FSC would research the risks to consumers first and decide how to set a framework, Huang said.
Banks seeking to use ChatGPT might risk data leaks, as they would be using customer information to interact with the software, which could incorporate that information into its own database, Banking Bureau Director-General Sherri Chuang (莊琇媛) said.
Even if banks use a special version of a large-language model for business, they should be aware of the data security risks and take precautions, Chuang said.
The Securities and Futures Bureau is unaware of any local securities company using ChatGPT as part of their equity research or customer service, but it would seek to confirm that, Kao said.
“There is no regulation banning securities companies from using new technology tools, but if the companies want to utilize the bot [ChatGPT], they must prevent data insecurity and be responsible for any financial advice they give to their clients, whether the advice based on their employees’ judgements or that of bots,” Kao said.
With ChatGPT gaining popularity worldwide, experts have been discussing whether it would replace financial services provided by humans, as the tool could analyze vast volumes of data quickly, and detect patterns and trends difficult for a person to spot.
However, when asked for advice on investing in local companies, the chatbot gave a neutral and conservative response.
It said that it cannot provide investment advice, which requires a thorough understanding of the investor’s financial situation, risk tolerance, investment goals and other factors.
Although some shares have performed well in the past, that performance is not a guarantee of future results, it added.
The CIA has a message for Chinese government officials worried about their place in Chinese President Xi Jinping’s (習近平) government: Come work with us. The agency released two Mandarin-language videos on social media on Thursday inviting disgruntled officials to contact the CIA. The recruitment videos posted on YouTube and X racked up more than 5 million views combined in their first day. The outreach comes as CIA Director John Ratcliffe has vowed to boost the agency’s use of intelligence from human sources and its focus on China, which has recently targeted US officials with its own espionage operations. The videos are “aimed at
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
US Indo-Pacific Commander Admiral Samuel Paparo on Friday expressed concern over the rate at which China is diversifying its military exercises, the Financial Times (FT) reported on Saturday. “The rates of change on the depth and breadth of their exercises is the one non-linear effect that I’ve seen in the last year that wakes me up at night or keeps me up at night,” Paparo was quoted by FT as saying while attending the annual Sedona Forum at the McCain Institute in Arizona. Paparo also expressed concern over the speed with which China was expanding its military. While the US
SHIFT: Taiwan’s better-than-expected first-quarter GDP and signs of weakness in the US have driven global capital back to emerging markets, the central bank head said The central bank yesterday blamed market speculation for the steep rise in the local currency, and urged exporters and financial institutions to stay calm and stop panic sell-offs to avoid hurting their own profitability. The nation’s top monetary policymaker said that it would step in, if necessary, to maintain order and stability in the foreign exchange market. The remarks came as the NT dollar yesterday closed up NT$0.919 to NT$30.145 against the US dollar in Taipei trading, after rising as high as NT$29.59 in intraday trading. The local currency has surged 5.85 percent against the greenback over the past two sessions, central
RSS