Nasdaq's Tal Cohen Advocates Responsible AI Use in Financial Services
July 30, 2025 | Banking, Housing, and Urban Affairs: Senate Committee, Standing Committees - House & Senate, Congressional Hearings Compilation
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The U.S. Senate Committee on Banking, Housing, and Urban Affairs convened on July 30, 2025, for a subcommittee hearing titled "Guardrails and Growth: AI’s Role in Capital and Insurance Markets." The meeting aimed to explore the implications of artificial intelligence (AI) in financial services, focusing on responsible innovation and regulatory frameworks.
The session began with remarks from various industry leaders, including Nasdaq President Tal Cohen, who emphasized the importance of AI in enhancing market operations. Cohen highlighted Nasdaq's long-standing commitment to technology, noting that the exchange has integrated AI into its services to improve fraud detection, customer experience, and operational efficiency. He stressed the need for a balance between technological advancement and regulatory oversight, advocating for a governance framework that ensures security and transparency in AI applications.
Cohen outlined Nasdaq's three core pillars: enhancing liquidity, cultivating transparency, and strengthening integrity. He acknowledged the transformative potential of AI while also recognizing the associated risks. His testimony underscored the necessity of ethical practices in AI deployment, asserting that responsible innovation is rooted in accountability and a thorough understanding of market dynamics.
Following Cohen, Dr. David Cox, Vice President for AI Models at IBM Research, presented his perspective on AI's potential benefits in the financial sector. He described AI as a generational opportunity that can automate processes, enhance compliance, and improve customer service. Dr. Cox argued that the advantages of AI significantly outweigh the risks, particularly in unlocking productivity and delivering value to customers.
The discussions highlighted a consensus among industry leaders on the need for thoughtful regulation to harness AI's capabilities while mitigating risks. The hearing concluded with a commitment from participants to collaborate with regulators and industry partners to ensure that AI technologies enhance the fairness and integrity of U.S. capital markets.
Overall, the meeting underscored the critical role of AI in shaping the future of financial services, emphasizing the importance of responsible governance and innovation to foster a sustainable and equitable financial system.
The session began with remarks from various industry leaders, including Nasdaq President Tal Cohen, who emphasized the importance of AI in enhancing market operations. Cohen highlighted Nasdaq's long-standing commitment to technology, noting that the exchange has integrated AI into its services to improve fraud detection, customer experience, and operational efficiency. He stressed the need for a balance between technological advancement and regulatory oversight, advocating for a governance framework that ensures security and transparency in AI applications.
Cohen outlined Nasdaq's three core pillars: enhancing liquidity, cultivating transparency, and strengthening integrity. He acknowledged the transformative potential of AI while also recognizing the associated risks. His testimony underscored the necessity of ethical practices in AI deployment, asserting that responsible innovation is rooted in accountability and a thorough understanding of market dynamics.
Following Cohen, Dr. David Cox, Vice President for AI Models at IBM Research, presented his perspective on AI's potential benefits in the financial sector. He described AI as a generational opportunity that can automate processes, enhance compliance, and improve customer service. Dr. Cox argued that the advantages of AI significantly outweigh the risks, particularly in unlocking productivity and delivering value to customers.
The discussions highlighted a consensus among industry leaders on the need for thoughtful regulation to harness AI's capabilities while mitigating risks. The hearing concluded with a commitment from participants to collaborate with regulators and industry partners to ensure that AI technologies enhance the fairness and integrity of U.S. capital markets.
Overall, the meeting underscored the critical role of AI in shaping the future of financial services, emphasizing the importance of responsible governance and innovation to foster a sustainable and equitable financial system.
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