CFTC commissioner calls for AI framework in commodities markets

A commissioner at the Commodity Futures Trading Commission (CFTC) called for the agency to launch initiatives addressing the use—and misuse—of artificial intelligence (AI) tools in commodities markets.

In a speech delivered Thursday at an industry event, CFTC Commissioner Kristin Johnson said she favors increasing penalties for those who use AI tools to perpetuate fraud or market manipulation, as well as adopting “a principles-based regulatory framework for addressing the increasing prevalence of AI in our markets.”

Johnson said commodities markets are already permeated with AI use cases, in areas including trading, risk management, risk assessments and hedging, resource optimization, regtech, compliance, books and records, data processing and analytics, cybersecurity and resilience, and customer service.