The Institute of International Finance (IIF) has submitted a response on behalf of its members to the International Organization of Securities Commissions’ (IOSCO’s) consultative report on Artificial Intelligence in Capital Markets: Use Cases, Risks, and Challenges. The IIF welcomes that IOSCO has taken a measured, investigative approach in this first phase, particularly given the speed of developments and the fluidity of many regulatory regimes, both sectoral and economy-wide.

This response offers some high-level considerations that the IIF believes could usefully inform IOSCO’s further work. Notably, the IIF response points out that the IOSCO report’s overall narrative is focused on risks and challenges; we recommend a more balanced perspective be taken so that the report also acknowledges the transformative benefits of AI and the measures already in place to identify and manage relevant risks and counteract potential downsides. 

We appreciate IOSCO’s thoughtful approach to examining AI in capital markets and its commitment to engaging with stakeholders. The IIF and its members remain committed to the responsible development and deployment of AI in financial services and look forward to opportunities to participate in further discussions on this important topic.