This warning almost sounds like a target.
From Business Insider, October 16:
- Gary Gensler told the Financial Times that the next financial crash could be sparked by AI.
- The SEC chair called for regulation to address how AI models are being used by banks on Wall Street.
- Banking has embraced AI, with Morgan Stanley rolling out a chatbot advisor based on OpeanAI's GPT4.
The chair of the SEC has warned that AI could trigger a financial crisis, as Wall Street rushes to adopt the new technology.
Gary Gensler told the Financial Times that it was "nearly unavoidable" that AI would cause a financial crash as soon as the late 2020s or early 2030s, and said that reliance on models developed by tech companies could lead to economic chaos.
"I do think we will in the future have a financial crisis . . .[and] in the after action reports people will say 'Aha! There was either one data aggregator or one model . . . we've relied on.' Maybe it's in the mortgage market. Maybe it's in some sector of the equity market," he said.
Gensler called for AI regulation that addresses both the underlying AI models built by tech companies and how they are used by Wall Street banks, describing it as a "cross-regulatory challenge."....
