Chinese Regulator Desire to Use AI Chatbots in Financial Regulation Amid AI Boom

A Chinese financial regulator has expressed interest in using artificial intelligence (AI) in monetary policy, after ChatGPT, an AI chatbot, triggered investment interest and promises of public support in China. Lu Lei, Deputy Head of the State Administration of Foreign Exchange (SAFE) expressed his ideas at the annual conference of the China Society for Finance and Banking about the potential use of ChatGPT to study financial issues and inform governance.

Lu Lei commented that the latest Microsoft report on artificial general intelligence shocked him. As there is a reflected consistency between the GPT thinking and monetary authorities’ cognitive and decision-making logic. Other Chinese regulator seem to also show openness to new technology, especially if it has potential to improve financial stability.

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Currently, regulators look at indicators like the capital adequacy ratio and provision coverage ratio to assess the health of the banking system. The SAFE official said that these traditional tools could make way for a new regulatory system mainly targeting liquidity, fraud and mismanagement in the future.

Beijing’s focus on regulatory technologies comes as a banking crisis in the United States and the subsequent international turbulence posed a new test for monetary authorities and financial regulators. Developing artificial intelligence is the government’s priority, especially as China’s digital economy now accounts for about 41 per cent of gross domestic product and is a key driver of future growth.

Source : SCMP

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