U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler said that regulators must quickly find a way to manage the risks that the concentration of power in artificial intelligence platforms poses to financial stability.
Gary Gensler told the Financial Times that if there is no rapid intervention, it is "nearly unavoidable" that artificial intelligence will trigger a financial crisis within the next decade.
The SEC chair stated that shaping AI regulations as potential risks impact financial markets will be a difficult test for U.S. regulators.
Gensler said, "It’s a hard challenge… It’s a hard financial stability issue to address because our regulation is largely about individual institutions, individual banks, individual money market funds, individual brokers; that’s the nature of what we do. And this is about a horizontal issue where many institutions might rely on the same underlying model or underlying data aggregator."
News Source: 12punto
