Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has issued a stern warning about the potential dangers of artificial intelligence (AI) to the global economy and financial stability.
Gary Gensler, in a speech on Monday, said that if big tech companies dominate the development and use of artificial intelligence in financial markets, this may introduce new risks and increase existing risks.
He also said that artificial intelligence could worsen the interconnectedness of the global financial system, making it more vulnerable to shocks and crises.
“Artificial intelligence could play a central role in reports prepared in the wake of a future financial crisis,” he warned.
According to the SEC chief, risk management tools alone will not be able to prevent the risks posed by advanced artificial intelligence tools to the US and global financial systems.
Gensler's speech, not to mention the SEC's aggressive actions against the cryptocurrency markets, comes at a time when AI innovation is accelerating, leading to calls in some corners to regulate, if not ban, the technology.
However, after the SEC chairman's speech, there was a decline in the price of artificial intelligence-themed altcoins:
*Not investment advice.