Karsten Wenzlaff, Advisor
August 26th, 2025
AI Governance | Sep 17, 2024

Image: Freepik
In a recent OpenAI post titled 'An update on our safety and security practices', it was announced that CEO Sam Altman has resigned from the Safety and Security Committee, presumably to give the committee greater autonomy in the face of mounting criticism of the company's safety procedures by U.S. lawmakers and former executives.
The committee was established in May 2024 to assess the potential safety risks associated with OpenAI's artificial intelligence models, such as GPT-4 and the latest LLM, Strawberry (with PhD -level reasoning). Critics are concerned about Altman's outsized influence over the company's direction as CEO and the claim of prioritizing faster development over AI safety. This comes as regulatory scrutiny is ramping up. In July, a group of U.S. senators wrote a letter pressuring OpenAI to make safety and transparency a top priority.
Also, early this year, several OpenAI employees in charge of AI safety, especially those who deal with long term risk reduction just 'quit' saying safety concerns were losing priority. There's also an August 2024 'Letter from OpenAI Whistleblowers' written by members of the technical and policy teams. Having said all this, skeptics are still concerned about the independence of the newly shaped committee, and concerns over the company's ultimate goals given the recent surge in lobbying activities that has increased it's budget almost 3x since the start of the year.
The restructured Safety and Security Committee will now be led by Zico Kolter (professor from Carnegie Mellon University) with additional members including Adam D’Angelo (CEO of Quora), and Paul Nakasone (retired U.S. Army General). The revamped committee will have more independence, and perhaps more importantly, more power. It now has the authority to delay or halt the release of AI models if safety concerns arise, a significant shift in OpenAI’s internal governance.
With Altman’s departure from the SSC, the committee is now chaired by Zico Kolter, a professor at Carnegie Mellon University, alongside other external members like Quora CEO Adam D'Angelo, a retired U.S. Army General Paul Nakasone, and Nicole Seligman a former EVP and General Counsel of Sony Corporation. The redesigned committee will arguably be more independent. It also has now powers with the authority to delay or halt the release of AI models if safety concerns arise.
Blog post quote:
The Safety and Security Committee will be briefed by company leadership on safety evaluations for major model releases, and will, along with the full board, exercise oversight over model launches, including having the authority to delay a release until safety concerns are addressed.
Altman leaving the Safety committee is a step in the right direction but how truly independent the revamped committee will be has yet to be seen.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI | Sep 13, 2024

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Yesterday, top executives from Nvidia, OpenAI, Anthropic, Google, and other tech giants met senior U.S government officials at the White House to discuss the energy infrastructure requirements to support the quickly expanding AI industry. New large scale data centres are needed along with updating the energy infrastructure to ensure energy demands are inline with supply.
See:
Post meeting, the White House announced the formation of an interagency task group to simplify data centre expansion across the United States and accelerate licensing procedures. The Energy Department also plans to produce a study later this year to evaluate the impact of data centre energy use and provide suggestions to meet the rising electricity demand.
Nvidia CEO Jensen Huang highlighted the significance of public-private cooperation to meet the enormous energy demands and that the development of AI was akin to a new industrial revolution which would require new energy solutions. The need for AI processing capacity is still growing, especially now that Nvidia's Blackwell processor is going into mass production.
OpenAI announced plans to spend tens of billions of dollars in U.S. data centre infrastructure with up to 40,000 jobs may be created by these investments. The business underlined the risk of lagging behind other countries like China, which is also making significant investments in AI infrastructure, and stressed the significance of these investments in order to preserve American leadership in AI.
OpenAI released in a statement:
“OpenAI believes infrastructure is destiny and that building additional infrastructure in the US is critical to the country’s industrial policy and economic future”.
A major theme at the meeting was the national security risk of falling behind with inadequate energy infrastructure, thus limiting important AI breakthroughs. Renewable energy sources, such as solar and wind power are critical solutions that can help meet energy needs while addressing environmental concerns. The Energy Department wants to support data centre operators with loans, grants, and tax credits to promote sustainable and dependable energy sources.
In a bifurcating world, the importance of increased cooperation between government and AI executives is more important than ever, if the United States wants to remain at the forefront of AI innovation without sacrificing national security and environmental concerns. Next up will be moving talks into practical action plans to advance AI and energy infrastructure development in the U.S.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Compliance | Sep 11, 2024
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The Marketing Rule was created in December 2020 and now the Securities and Exchange Commission (SEC) is ramping up enforcement. The SEC just fined nine investment advisors a total of $1.24 million for using deceptive advertising and omitting key disclosures when relying on third-party ratings and client endorsements. The marketing rule is the biggest modification in decades and is intended to improve investment advisor advertising standards and ensure that investors get fair, accurate, and transparent information. Fintech companies, especially those offering financial services, need to understand and follow these new regulations to avoid regulatory fines.
The SEC 2020 Marketing Rule (430 page PDF) is regarded as one of the biggest modifications in many years. The previous solicitation and advertisement laws had not been touched since the 1960s/70s, so updates were long overdue given the introduction (and importance) of social media, digital marketing, and other forms of online communication including texting. The rule incorporates principles-based standards, which are more adaptable and suitable to the quickly changing marketing environment of today where firms use performance advertising, third-party ratings, and testimonials (to name a few techniques).
1 - Truthful and evidence-based claim: An adviser clearly shows performance outcomes across standardized periods (e.g., 1, 5, and 10 years) and discloses any associated risks, such as market volatility or potential losses. The performance data is supported by records that can be verified by the SEC, if required.
2 - Clear use of testimonials: A client testimonial is used with full disclosure that the individual is a current client who was rewarded for their recommendation. The commercial also emphasizes possible conflicts of interest and the fact that previous performance does not guarantee future results.
3 - Accurate 3rd party ratings: An adviser provides a third-party rating from a reputable agency and provides a detailed note that includes the assessment methodology, duration of the review and whether or not the advisor was paid for it.
1 - Misleading or false performance claim: An adviser promotes "top-performing" funds for a three-month period without disclosing that the success was due to an temporary anomaly in the market and that the long term performance were much lower.
2 - Improper use of testimonials: An advisor gives an amazing client endorsement that implies the advisor's services guarantee profits. They also don't disclose that they were paid for the endorsement.
3 - Inaccurate third-party ratings: An advisor advertises a third-party rating but does not disclose the rating criteria or mention that the business was compensated for services.
With the SEC concentrating on marketing compliance, fintech businesses should assess their marketing strategy to ensure transparency, accuracy, and fairness.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Data Privacy | Sep 10, 2024
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Yesterday, Philippe Dufresne, the Privacy Commissioner of Canada, issued a statement welcoming the Federal Court of Appeal's ruling in Canada's Privacy Commissioner vs Facebook (Meta). The court found that Facebook violated Canadian privacy laws by failing to secure meaningful consent from users and not adequately safeguarding their personal information.
This lawsuit was triggered because Facebook enabled the app "thisisyourdigitallife" (TYDL) between November 2013 and December 2015 to access not just user data but also data from users' friends without their permission, which was ultimately sold to Cambridge Analytica for political profiling - 50 million profiles in total. While the case centers on social media, it offers critical lessons for fintechs that handle sensitive financial data, as consumer protection and data privacy regulations tighten.
Facebook failed to obtain clear and meaningful permission. The companies privacy regulations failed to ensure user's (and their friends) understood how their data would be used. Transparency is top priority for fintechs. They need to make sure users clearly understand what they are agreeing to when they share their personal and financial information.
Strong security measures are required by law and essential for financial technology companies, as financial data is extremely sensitive. The court determined that Facebook had not sufficiently protected user data, especially when sharing it with other programs.
The lawsuit exposed Facebook's failure to sufficiently oversee third-party apps that use its platform (like TYDL), which sold the inappropriately obtained data to Cambridge Analytica (the scandal).
By learning from Facebook’s mistakes, fintechs can stay ahead of tightening regulations, protect their customers, and foster trust in a competitive quickly changing environment.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Funding | Sep 5, 2024

Image: Freepik
As reported by Reuters, Safe Superintelligence Inc. (SSI), founded by Ilya Sutskever, has raised $1 billion from prominent investors like Sequoia Capital and Andreessen Horowitz to develop AI systems that exceed human intelligence while placing safety first. This occurs at a time when an increasing number of AI executives and researchers are leaving powerful roles at Google, OpenAI, and others to focus on the development of ethical and responsible AI.
SSI's $1 billion round reflects an increasing understanding that AI needs to be regulated, and if unchecked for much longer, there will be problems that require immediate attention. With this kind of funding in-hand, SSI can focus on safety long-term without having to worry about commercializing a quick product to survive. SSIs mission is pretty clear. That is ensure that superintelligent AI remains aligned with human values, rather than rushing into markets without the appropriate protections.
Sutskever and SSI are not alone in their efforts to improve AI safety. Several high-profile AI leaders have left their positions at large companies pushing the limits of AI to focus more on safety and responsible AI research, such as:
Notably, OpenAI investors, Sequoia Capital and Andreessen Horowitz, have also backed SSI highlighting the tension in the AI space. Such a dual investment strategy is hedging their risk by The conflict in the AI sector is brought to light by this dual investment approach. Investors are hedging their risks by funding businesses that place a high priority on safety while also encouraging progressive innovation. Striking a balance between safety and innovation in the wider AI industry is becoming more important for large players including firms like NVIDIA creating some short term volatility.
Governments are starting to create and implement regulations that oversee the creation and application of AI systems, particularly those that communicate with the general public. Examples of leading AI regulations that are shaping global AI governance include:
As government, industry and society at large demand greater responsibility towards the development of safer AI systems globally, there will likely be further bifurcation in the market between companies focused on rapid commercialization and those prioritizing safety. SSI's $1 billion backing propels it to the forefront of this effort.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Financial Literacy Month | Sep 4, 2024

Image courtesy of FCAC
To strengthen financial literacy in Canada, the Financial Consumer Agency of Canada (FCAC) launched financial literacy month (FLM) back in 2011 and continues to lead a national campaign to engage organizations across private, public, and the non-profit sectors to encourage financial education and resilience every year. This November is Financial Literacy Month.
One of the main theme's this year is "Money on your mind. Talk about it!" to help break the taboo around talking about money. As leaders and influencers in fintech, we all play an important role in shaping how Canadians manage, interact with, think about, and of courese talk about money and their finances.
Financial technology companies are uniquely positioned to provide Canadians with the tools, information, and resources they require to improve their financial well-being. As tech continues to transform how we manage our money, it is more important than ever to ensure that all Canadians, regardless of financial knowledge and background, are prepared to make educated and smart decisions about money.
You may already have a wide range of financial resources and tools on your platform. This November, encourage visitors to explore these educational features that can provide valuable information around budgeting tools, credit score monitoring, saving options, debt management, and tailored financial insights that align with your community and platform design and tools. If you're stuck for time and don't have many educational resources on your website, you can draw from the various free tools and resources available on the FCACs website. Or share the latest FCAC financial well-being survey results to help inform.
One idea is to create digestible content in a series that you can regularly share throughout the month of November to help customers understand critical financial literacy issues and concepts. If your platform can deliver data-driven personalized advice to users that would be amazing. For example, analyzing spending patterns and recommending tips on reducing expenses or how to optimize budget planning. This type of content can also be delivered through quizzes or challenges where the results help guide customers towards better financial habits.

Image courtesy of FCAC
Host a virtual event or webinar and encourage your network to participate in an FLM campaign by sharing their own stories, challenges, or tips on social media using the hashtags #MoneyOnYourMind and #FLM2024. Perhaps participants can share their financial achievements and how they did it. You could incentivize participation with rewards and discounts or perks on your platform. Feature the top stories through your network and social channels to help inspire others. Engage with other influeners or financial experts to discuss and host Q& A sessions.
Traditional financial services remain out of reach for many Canadians. Fintechs can be crucial in closing this gap by creating resources and tools that specifically help underprivileged or marginalized populations.
Collaborate with NCFA Canada and others to develop and disseminate instructional materials that are available to all Canadians, including those who might not have access to conventional financial institutions. Offer them free access to your platform's premium features during FLM along with financial management resources.
As a Fintech, you're in a great position to lead the way in encouraging financial literacy this November. By incorporating education into your platform, connecting with your user base through events or social media, and removing barriers for underprivileged groups, you can contribute to a future in which every Canadian feels competent managing their finances.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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