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.
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
SEPARATE: The MAC rebutted Beijing’s claim that Taiwan is China’s province, asserting that UN Resolution 2758 neither mentions Taiwan nor grants the PRC authority over it The “status quo” of democratic Taiwan and autocratic China not belonging to each other has long been recognized by the international community, the Mainland Affairs Council (MAC) said yesterday in its rebuttal of Beijing’s claim that Taiwan can only be represented in the UN as “Taiwan, Province of China.” Chinese Minister of Foreign Affairs Wang Yi (王毅) yesterday at a news conference of the third session at the 14th National People’s Congress said that Taiwan can only be referred to as “Taiwan, Province of China” at the UN. Taiwan is an inseparable part of Chinese territory, which is not only history but
INVESTMENT WATCH: The US activity would not affect the firm’s investment in Taiwan, where 11 production lines would likely be completed this year, C.C. Wei said Investments by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the US should not be a cause for concern, but rather seen as the moment that the company and Taiwan stepped into the global spotlight, President William Lai (賴清德) told a news conference at the Presidential Office in Taipei yesterday alongside TSMC chairman and chief executive officer C.C. Wei (魏哲家). Wei and US President Donald Trump in Washington on Monday announced plans to invest US$100 billion in the US to build three advanced foundries, two packaging plants, and a research and development center, after Trump threatened to slap tariffs on chips made
RSS