U.S. SEC Chair Warns of Impending Financial Crisis Due to Uncontrolled AI
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Gary Gensler, the Chair of the U.S. Securities and Exchange Commission, has issued a stark warning. He believes that unless artificial intelligence (AI) is tightly regulated, it could precipitate a devastating financial crash by the end of this decade. Gensler went further, suggesting that an AI-induced financial crash is not just a possibility, but "nearly unavoidable." In an interview with the Financial Times, Gensler stressed the urgent need for swift and effective regulation by U.S. authorities to avert such a catastrophe. He acknowledged the considerable challenge this presents, as existing regulations primarily focus on individual financial institutions, banks, money market funds, and brokers. This new threat involves a different dynamic: many institutions potentially relying on the same core model or data aggregator. #AIRegulation #FinancialCrash #SECChairWarning #AIChallenges #FinancialStability #ArtificialIntelligence #MarketCrashThreat #FinancialSector #RegulatoryResponse #HighFrequencyTrading