On January 25, 2024, the Commodity Futures Trading Commission (CFTC)
introduced its first foray into regulating artificial intelligence (AI), releasing both a customer advisory and a Request for Comment (RFC).
akin to traditional Ponzi schemes, and underscores the agency's focus on enforcement against such practices.
The AI Advisory issued by the CFTC warns against AI-related scams, highlighting the misuse of AI technology in fraudulent schemes,
seeking public input on various regulatory aspects, including market safety, customer protection, governance, data privacy, and bias mitigation.
Conversely, the AI RFC represents a proactive engagement by the CFTC with AI technology,
the role of AI in compliance departments, disclosure requirements for AI use, and the implications for market surveillance.
The RFC poses detailed questions regarding the classification and regulation of autonomous AI bots,
regulatory oversight, compliance considerations, and ethical implications for the commodity derivatives industry.
Industry stakeholders are expected to respond to the AI RFC by April 24, 2024, with anticipated guidance from the CFTC on the extent of AI use,