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AI and financial regulation - A government leader tells all 🏦

💵 AI's impact on financial regulators, OpenAI's offers $10M for AI talent, ChatGPT's huge mistake with plugins, and more!

Author

Everyday AI
November 13, 2023

Outsmart The Future

Today in Everyday AI
7 minute read

🎙 Daily Podcast Episode: How will AI innovations impact financial regulators? What impact will it have on the everyday person? We got the scoop from an expert helping lead the charge. Give it a listen.

🕵️‍♂️ Fresh Finds: AI-powered invoicing, Google reportedly to invest in Character.AI, and investors using AI to analyze earning call meetings. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: OpenAI's offers $10M for AI talent (that’s not a misprint), Microsoft stock reaches all-time high with AI rumors swirling, and Presidents Biden and Xi agreement on AI and nuclear weapons. For that and more, read on for Byte Sized News.

🚀 AI In 5: Did ChatGPT make a terrible mistake with plugins? The latest update brought a new plugins feature that doesn’t always work. See it here

🧠 Learn & Leveraging AI: So what does the future of financial regulation look like with AI, specifically with credit unions? What impact does it have on the future of financial regulations and everyday people? We talked to the leader in the space to keep you informed. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about AI's impact on data analysis, DDoS attack on ChatGPT, and how to use ChatGPT’s new Custom GPT’s feature. Check it here!

AI Innovation for Financial Regulators 🏦

How will AI innovations impact financial regulators?

It may not be something you think about if you're not in the industry but it's going to impact us all more than you think.

Financial regulation has a huge impact on the economy and the everyday person. So knowing how AI’s implementation will affect financial regulators is huge.

Kyle Hauptman, Vice Chairman at the National Credit Union Administration, joins us to discuss how AI is changing the role of financial regulators.

Also on the pod today:

• GenAI's impact on US economy 🇺🇸
• How will AI impact financial regulation jobs? 🤔
• AI and financial regulator's impact on everyday people 💰

It’ll be worth your 28 minutes:

Listen on our site:

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Listen on:

Upcoming Everyday AI Livestreams

Tuesday, November 14th at 7:30 am CST ⬇️

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Lebesgue helps you track competitor strategies and global marketing trends, Billy is AI-powered invoicing, and LeadDelta 3.0 is a LinkedIn CRM built for modern teams & creators

Big Tech – Google is rumored to invest in AI startup Character.AI, an AI chatbot.

Pop Culture - The Hollywood strikes against AI may have ended, but actress Justine Bateman thinks the tentative agreement made around AI isn’t helpful.

Business of AI – Investors used AI to analyze executives’ voices during an earning call to pick up on what wasn't said.

Read This – A new AI tool hopes to help the many, including celebrities, that have been affected by AI voice cloning.

1. OpenAI's Offers $10M For Talent Acquisition 🤑

OpenAI is reportedly offering compensation packages worth up to $10 million to lure top AI researchers from Google. The company, valued at around $86 billion, has already recruited dozens of former Google and Meta employees. These efforts are part of OpenAI's strategy to enhance its AI capabilities, as seen with the development of ChatGPT. The company is also exploring an employee share sale, further incentivizing potential recruits with lucrative equity options.

2. Microsoft's AI-Driven Stock Surge 📈

Microsoft's stock reached a record high ahead of its announcement of new AI advancements. The company's stock broke out of a cup base, marking a significant uptrend. This surge is attributed to Microsoft's strong performance in cloud computing and AI initiatives, including its Copilot products. The upcoming Ignite conference, where Microsoft will showcase its latest AI innovations, is eagerly anticipated as a potential catalyst for further stock growth.

3. Nvidia's Next-Gen AI Chip: H200 🖥️

Nvidia has unveiled the H200, its latest high-end chip designed for training AI models. This new GPU is an upgrade from the H100 and is expected to deliver nearly double the output speed. The H200, equipped with 141GB of advanced memory, is set to ship in Q2 2024. Nvidia's stock has soared due to the excitement over its AI GPUs, highlighting the growing demand for powerful AI computing solutions.

4. Biden-Xi Agreement on AI and Nuclear Weapons 🌏

US President Joe Biden and China President Xi Jinping are expected to sign a deal to limit AI use in nuclear weapon control systems. This agreement, set to be finalized at the APEC summit, aims to control the proliferation of AI in military technologies. The deal includes restrictions on AI in autonomous weaponry and nuclear warhead deployment systems. This move comes amid rising tensions and is a significant step towards responsible AI use in military applications.

5. Google's Legal Action Against Fake AI Chatbot 🚨

Google has initiated legal action against a fraudulent AI chatbot that downloads malware. The lawsuit targets the creators of this deceptive software, which masquerades as an AI service while compromising user security. This case underscores the growing concern over the misuse of AI technology and the need for vigilant legal measures to protect users and legitimate AI developments.

Did ChatGPT make a terrible mistake with plugins? 😬

Soooo ChatGPT kinda made a mistake with plugins!

ChatGPT’s most recent update brought custom GPTs and a new interface, along with a supposed new plugins ability.

You apparently can now change the plugins AFTER you’ve started a new chat.

But it’s not really working as intended…

🤷‍♂️ What’s Going On and Why It Matters:

Whether you realize it or not, credit unions (and their regulation) help drive the American economy forward. 

And the recent surge of Generative AI is changing how the industry operates. 

So who better to break it all down for us than Kyle Hauptman, the Vice Chairman for National Credit Union Administration. 

Here’s the gist: 

AI has the potential to revolutionize the financial industry, and that includes the work of regulators. 

Kyle enlightened us on how AI is already being used by credit unions for various purposes, from fraud detection to customer service.

And then he took it a step further — breaking down how the business of Generative AI can be a driving economic force in the same way the Internet was for the U.S. 

What else did we dive into? 

A ton. 

  • Discussion on the use of AI in financial regulation and the potential benefits

  • Explanation of how AI has been used in the financial sector for decades

  • Examples of how credit unions are already using AI, such as online lending and customer service improvements

  • Public perception of AI, including both excitement and concerns

  • Importance of responsible development and capturing the upside of AI

  • Potential job opportunities and benefits for individuals and companies, especially in financial services

  • Potential impact of generative AI on lending decisions and customer service in the financial sector

What’s it mean for the rest of us? You know, those not guiding financial institutions? 

Let’s break it down 👇

🦾How You Can Leverage:

On today’s show, Kyle both zoomed in and hit rewind on how GenAI is impacting financial regulation. 

(Yeah, kids… do you even know what rewind is?!) 

In a far-ranging interview, Kyle laid out not only how Generative AI is already having a profound impact, but also laid out a gameplan on how it can help the US government stay an economic juggernaut. 

Best yet?

Kyle also previewed what widespread adoption will mean for the everyday credit union user. 

Let’s get it. 

1 –Better customer service 🤝

More machines means better customer service.

Wait… what?

That’s right. Large language models can not only improve and personalize customer service, but it can also help break down language barriers. 

For example, credit unions can leverage LLMs to provide forms and information in multiple languages, catering to a more diverse customer base, or allow credit unions to provide answers in a multilingual way. 

Try this: Check out this article from the Credit Union Times, breaking down best practices and applications for credit unions. 

Want to see more on the work the National Credit Union Administration is doing around GenAI? Catch a recap of the Defense Credit Union Council’s Annual Conference, where AI and ChatGPT were discussed at length. 

2 – US leading innovation 📡

TBH, the US dominated the Internet innovation era. 

And Kyle sees the US having the same opportunity with Generative AI.  

This proactive approach positions the US as a leader in the AI industry, attracting top talent and investment. The advancements in technology enable financial regulators to stay ahead of potential challenges and drive innovation within the financial sector.

Why does that matter for financial regulation? 

More investment dollars, more jobs, and more opportunities for growth mean that financial regulators can better protect consumers and ensure the stability of the financial system.

Try this: How could the successful rollout of Generative AI help financial regulation and the economy at large? 

U.S. regulators can streamline processes, make data-driven decisions, and enhance fraud detection which can lead to U.S. landing more GenAI jobs and establishing itself as a leader in the space. 

See how policymaking and innovation work hand-in-hand in the age of AI, with this breakdown by PwC.

3 – GenAI = More loan fairnessN🫡

Here’s one we can all get behind.

Kyle laid out how AI helps regulators and credit unions level the playing field in terms of loan fairness. 

By using generative AI, financial regulators and credit unions can improve loan fairness by making lending decisions more accurate and fair. Traditional lending decisions based solely on credit scores can overlook important factors, such as payment history for bills and rent.

Try this: Not only can Generative AI transform lending by improving fairness, but it can even lead to greater economic equity in large if leveraged correctly. 

Now This …

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