U.S. Treasury Secretary Janet Yellen will address AI risks and opportunities in finance at the FSOC 2024 Conference.

Concerns include the complexity, opacity, and biases in AI models, along with inadequate risk management frameworks.

The Treasury Department is working to harness AI's potential while mitigating associated risks, engaging with regulators, and building its AI capacity.

The FSOC, led by the Treasury, is monitoring AI's impact on financial stability and fostering dialogue among regulators.

In December, the FSOC identified AI in financial services as a vulnerability, recommending ongoing monitoring and expertise development.

Yellen highlights the need to address AI's significant risks and opportunities, advising investors to stay vigilant and monitor AI and market volatility via ETFs and ETNs.