Xiao Gang, former chairman of the China Securities Regulatory Commission: Strengthening the governance of financial AI algorithms and models

PANews reported on December 22 that Xiao Gang, the former chairman of the China Securities Regulatory Commission, said at the "AI+Finance" summit of the National Wealth Development Research Cooperation Platform on December 22 that artificial intelligence is a "double-edged sword". On the one hand, it has led to a new round of technological and industrial revolution, profoundly changing social production and life, as well as the business model of the financial industry. On the other hand, it has also created various risks and challenges. From the perspective of intelligent finance, Xiao Gang believes that artificial intelligence has greatly improved the ability of financial institutions to identify early warnings and control risks, but it has not diversified or eliminated financial risks. Therefore, the essence of intelligent finance is still finance, and it must follow the basic laws of finance. To strengthen the governance of financial AI algorithms and models, Xiao Gang believes that an algorithm model governance framework should be established, with laws and regulations as the top layer, and including objectives, organizations, tasks, and ecosystems.