The Commodity Futures Trading Commission (CFTC) has designated Dr. Ted Kaouk as the first Chief Artificial Intelligence Officer, expanding his role to lead AI and data strategies for improved market oversight and regulation. Dr. Kaouk, previously serving as the Chief Data Officer and Director of the Division of Data at the CFTC, will now spearhead the development and implementation of the agency's comprehensive data and AI strategy.

This strategic move aims to bolster supervision, monitoring, and enforcement within the derivatives market under the CFTC's purview. Chairman Rostin Behnam emphasized the pivotal role of advanced data analytics and AI in transforming the CFTC's operational framework. Dr. Kaouk's expertise and leadership are deemed essential in advancing the agency's initiatives, fostering skill enhancement, promoting a data-driven culture, and leveraging AI for innovation in financial market regulations.

Dr. Ted Kaouk's Background and Expertise

Before joining the CFTC, Dr. Kaouk held key positions in various government entities, including serving as the Chief Data Officer at the Office of Personnel Management (OPM). Noteworthy achievements include developing the first federal government-wide human capital data strategy and establishing the initial enterprise data analytics and AI platform at the U.S. Department of Agriculture. Dr. Kaouk's leadership was also evident during his tenure as the inaugural Chair of the Federal Chief Data Officers Council from 2020 to January 2024.

Dr. Kaouk's professional journey commenced as a surface warfare officer in the U.S. Navy, followed by academic pursuits at esteemed institutions where he obtained his undergraduate degree from the U.S. Naval Academy, a master's degree from the University of Virginia, and a PhD from the University of Maryland, College Park.

AI Day and the Future of AI in Financial Regulation

In conjunction with Dr. Kaouk's appointment, the Commission's Technology Advisory Committee (TAC), under the guidance of Commissioner Christy Goldsmith Romero, has unveiled the agenda for the upcoming "AI Day." This event, hosted at the CFTC's Washington, D.C. headquarters, will delve into the responsible integration of AI in regulated financial services. The sessions will feature insights from AI experts spanning government regulators and the private sector.

Key topics to be addressed include the role of AI in fostering responsible innovation at the Federal Reserve, market automation, the NIST AI Risk Management Framework, and the U.S. Treasury Department's report on AI in financial sector cybersecurity. These discussions aim to deliberate on the application and oversight of AI technologies in financial markets.

The AI Day event encourages public engagement through in-person attendance or via a live webcast accessible on the CFTC's official website. This initiative underscores the TAC's commitment to fostering informed dialogues on the challenges posed by AI technologies at the intersection of technology, law, and policy.