Dottie Romo, head of risk management and control at the U.S. Internal Revenue Service (IRS), warned that regulators are falling behind the rapid development of artificial intelligence (AI) capabilities in financial transactions. Speaking at the Future of Money event organized at the United Nations headquarters in New York, Romo emphasized that modern AI systems make millions of decisions in minutes, creating a significant gap between technological advancements and regulatory practices.
Research by BeInCrypto, conducted from July 23 to August 26, showed that AI systems are already processing 6.4 million operations, with a total amount of $119,947. Notably, 90.8% of these transfers were for less than one cent, illustrating how AI agents use technology to conduct small transactions, such as purchasing data or accessing APIs. Romo noted that the traditional regulatory approach, based on periodic reports to detect fraud and control risks, may not be fast enough to respond timely to changes in autonomous finance. According to her, to cope with such dynamics, the implementation of automated monitoring will be required to track algorithms.
"We won't be able to do this fast enough," Romo stated. She called for real-time monitoring on markets while maintaining human involvement in critical decisions. Julius Moye, a financial crime solutions manager at Mastercard, pointed to past disasters, such as Knight Capital, as examples of insufficient protection of automated systems. He suggested using AI for initial assessment and localization of problems, after which serious incidents would be referred to human review. Dino Cataldo Dell'Accio, a representative of the United Nations Joint Staff Pension Fund, emphasized that automation does not negate responsibility. He noted the importance of understanding who developed, implemented, and controlled the algorithm codes. The current situation prompts reflection on AI becoming a visible and aggressive part of the financial ecosystem, executing millions of transactions each month. Regulators cannot close this gap, and in the near future, they may be forced to use machines to monitor other machines.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.