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US regulators add artificial intelligence to potential financial system risks

US regulators add artificial intelligence to potential financial system risks

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US regulators add artificial intelligence to potential financial system risks

Rapid adoption of artificial intelligence (AI) could create new risks for the U.S. financial system if the technology is not properly supervised, a panel of regulators warned on Thursday.

The Financial Stability Oversight Council, which comprises top financial regulators and is chaired by Treasury Secretary Janet Yellen, flagged the risks posed by AI for the first time in its annual financial stability report.

While the group said AI could spur innovation or efficiencies at financial firms like banks, the rapidly advancing technology requires vigilance from both the companies and their watchdogs.

“AI can introduce certain risks, including safety and soundness risks like cyber and model risks,” the group said in its annual report published Thursday, adding it recommended firms and their regulators “deepen expertise and capacity to monitor AI innovation and usage and identify emerging risks.”

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The panel also flagged the growing role of nonbanks and private credit as meriting close attention, and said financial institutions and regulators should continue to try to better gauge risks stemming from climate change.

Some AI tools can be hugely technical and opaque, making it hard for institutions to explain or properly monitor them for shortcomings. If companies and regulators do not fully understand AI tools, then it is possible they could miss biased or inaccurate results, the report said.

It also noted that AI tools increasingly rely on large external datasets and third-party vendors, which pose their own privacy and cybersecurity risks.

Some regulators including the Securities and Exchange Commission, which sits on the panel, are scrutinizing how firms use AI, while the White House recently issued an executive order aimed at mitigating AI risk.

Elsewhere in the report, the FSOC noted that the U.S. banking system remains resilient, despite large bank failures this year. But it urged regulators to keep a close eye on uninsured bank deposits, the rapid flight of which triggered the failures. 

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WhatsApp to launch file sharing feature without internet

WhatsApp to launch file sharing feature without internet

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WhatsApp to launch file sharing feature without internet

The messaging app WhatsApp, owned by Meta, is working on a cool new feature to make it easier to share files even when you’re not connected to the internet.

Recent leaks say that pretty soon, you’ll be able to share photos, videos, music, and documents offline.

This new feature is all about letting you share different kinds of files without needing Wi-Fi or data. And don’t worry about security – the files you share will be encrypted, which means they’ll be safe from anyone trying to mess with them.

Screenshots that got leaked from the latest test version of WhatsApp for Android show us what kind of permissions this feature will need. One important thing is that it’ll be able to find other phones nearby that also have this offline file-sharing thing.

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For this to work on Android phones, WhatsApp needs a permission that lets it look for other devices using Bluetooth. But if you’re not comfortable with that, you can always turn it off.

Before this, WhatsApp added a feature that lets you pin notes to keep them handy. So, looks like WhatsApp is always coming up with cool stuff to make chatting even better!

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Flame-throwing robotic dog unleashed for sale in US

Flame-throwing robotic dog unleashed for sale in US

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Flame-throwing robotic dog unleashed for sale in US

A flame-throwing robotic dog is now available for sale in the US, thanks to an Ohio-based company.

Throwflame first released the contraption last year but recently announced it was back in stock, asking for $9,420 a piece.

The company released a promotional video showing the ARC Flamethrower and saying it can “send streams of fire up to 30 feet with the push of a button.”

The flamethrower is attached to a Go2 Robot Dog manufactured by the China-based Unitree.

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Throwflame said on its website the flamethrowers are legal to own and are “federally unregulated,” but are “not even considered a firearm (ironic) by the federal authorities.”

The company released its first flamethrowers in 2015, called the X15, which could send “a stream of flaming fuel or napalm up to 50 feet.”

That prompted a huge media response, questioning its legality. But Throwflame said the device remains “completely unrestricted in 48 states.”

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US military stage world’s first ever AI controlled warplane

US military stage world’s first ever AI controlled warplane

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US military stage world's first ever AI controlled warplane

The United States has finally started to seek answers to one of the most asked questions on the planet – who wins between man and machine?

Incredible details have emerged of the world’s first ever AI controlled warplane taking on a human piloted jet in a historic dogfight that saw both aircraft blasting through the sky at speeds of 1,200mph.

The insane test saw an AI powered modified F-16 – dubbed the X-62A – take on the same jet but with a human in the cockpit.

Both powerful jets went “nose-to-nose” as they battled 2,000ft up in the air, say officials.

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The tests were conducted by the Defense Advanced Research Projects Agency (DARPA) alongside the US Air Force to learn about just how advanced artificial intelligence really is.

Results of the intense air battles have been kept tightly under wraps but they were done to show how safe and effective autonomous fighter jets could be.

Officials were also intrigued to see how close AI powered military jets are to operating safely in a complex war environment.

In the end, 21 test flights were done for the project taking place between December 2022 and September 2023.

Lt. Col. Maryann Karlen, deputy commandant of the test pilot school, explained how it all worked in a fascinating video on the historic dogfight.

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They said: “In September we actually took the X-62 and flew it against a live manned F-16.

“We built up in safety using the manoeuvres – first defensive, then offensive, then high aspect nose-to-nose engagements where we got as close as 2,000 feet at 1,200 miles per hour.”

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