New York is seeking to procure a supercomputer to run artificial intelligence systems and gain a deeper understanding of the technology for more effective regulation.
"When I say the DFS is looking at AI and machine learning, it's not limited to how we evaluate private sector use of those tools," said New York Department of Financial Services Superintendent Adrienne Harris at the Point Zero Forum for financial regulation in Zurich. She said the state is looking to obtain the hardware and hire professionals to run the programs.
"My vision is for DFS and other regulators to become the regulator of the future, meaning that we are embracing reg tech to the public advantage, using data driven approaches that leverage data analytics to enhance our ability to predict and respond to events in the marketplace."
Supercomputers have long been a mainstay of military and intelligence agencies, used for tasks ranging from cracking codes to designing nuclear weapons. They have many civilian uses as well, like predicting weather, creating new drugs and simulating the effect of crashes on auto designs. The supercomputer market is expected to grow at a compound annual growth rate of about 9.5% from 2021 to 2026, fueled by increasing adoption of cloud computing and cloud technologies as well as the need to ingest larger datasets to train and operate AI, according to the World Economic Forum.
Last year, International Business Machines Corp. launched Vela, its first AI-optimized, cloud-based supercomputer for researchers.
"All of the major players in private tech and software are moving toward AI," said Harris. "That's no secret, but it would be a huge missed opportunity for regulators to not make use of these tools as well."
