CFTC Appoints First Chief AI Officer to Bolster Data Strategy & AI Governance

The Commodity Futures Trading Commission (CFTC) is doubling down on its data and artificial intelligence capabilities with the appointment of Dr. Ted Kaouk as the agency's first Chief Artificial Intelligence Officer.

Kaouk, who currently serves as the CFTC's Chief Data Officer overseeing the Division of Data, will take on an expanded role as Chief Data & Artificial Intelligence Officer. In this new position, he will spearhead the development of an enterprise AI strategy aligned with the agency's ongoing data-driven modernization efforts.

"As a top priority, the CFTC aims to leverage advanced data analytics and AI to transform our long-term oversight, surveillance and enforcement capabilities in the derivatives markets," said CFTC Chairman Rostin Behnam. "Ted's technical expertise and leadership made him the ideal candidate to implement our AI roadmap and data strategy."

The appointment signals the CFTC's commitment to robust AI governance as machine learning and automation are increasingly deployed for regulatory monitoring and decision-making. Kaouk will be tasked with instilling a data-driven culture, upgrading staff AI skillsets, and ensuring AI solutions are developed and used in a responsible, ethical manner that promotes fairness and mitigates risks.

"Enhanced data and AI capabilities hold immense potential, but they must be implemented thoughtfully with strong governance frameworks," said Michael Piwowar, executive director of the Milken Institute Center for Financial Markets. "Regulatory agencies will need dedicated AI leadership roles like this to navigate the complex compliance and ethical challenges surrounding AI adoption."

Prior to joining the CFTC last year, Kaouk served as the Chief Data Officer at the U.S. Office of Personnel Management and the U.S. Department of Agriculture, where he helped establish enterprise data and AI platforms. He is also the former chair of the Federal Chief Data Officers Council.

With a background as a surface warfare officer and degrees from the U.S. Naval Academy and University of Maryland, Kaouk's blend of technical, leadership and public sector experience made him a natural fit to drive the CFTC's AI strategy and data roadmap.

His appointment comes as financial regulators globally are ramping up efforts to promote AI governance, with a recent study finding over 70% of regulatory bodies are in active stages of formulating frameworks and guidance for AI applications in their supervised sectors.

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