The Commodity Futures Trading Commission (CFTC) appointed its first artificial intelligence chief to lead the agency’s efforts to further integrate AI into its operations.

Ted Kaouk, who joined the CFTC in December as chief data officer and director of its Division of Data, will assume the role of chief data and AI officer. Kaouk will lead the creation of the CFTC’s enterprise data and AI strategy, the commission announced Wednesday.

Kaouk, who began his career as a U.S. Navy surface warfare officer, previously led AI and data strategy efforts at the Office of Personnel Management and the U.S. Department of Agriculture. He served as the first chair of the Federal Chief Data Officers Council from 2020 until January.

The CFTC created Kaouk’s new position as it readies to step up its oversight of AI in the commodities marketplace. The agency is preparing to draft new guidance, advisories, and potential rules about the use and misuse of AI, based on forthcoming recommendations from its future of finance subcommittee.

The subcommittee will launch a survey to gather more information, following a commission request for comment in January.

The CFTC sought comments about AI use for compliance, in addition to trading, risk management, cybersecurity, recordkeeping, data processing and analytics, and customer interactions. The agency asked about the potential impact of AI on surveillance, anti-money laundering, regulatory reporting, and other compliance functions.

“Enhanced data analytics and artificial intelligence have the potential to transform the CFTC’s long-term capabilities for oversight, surveillance, and enforcement in the derivatives markets,” said CFTC Chair Rostin Behnam in the agency’s release. “As one of my top priorities, the CFTC has been deeply engaged in efforts to deploy an enterprise data and artificial intelligence strategy to modernize staff skillsets, instill a data-driven culture, and begin to leverage the efficiencies of AI as an innovative financial markets regulator.

“Ted has the requisite technical and leadership experience needed to lead and implement the CFTC’s data and AI roadmap at this critical stage to achieve the best outcomes for the CFTC and those it serves.”