How vast is the power of AI? U.S. regulators have begun to worry that AI threatens financial stability.U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently told the media,Without swift intervention, it is “almost inevitable” that AI will cause a financial crisis within a decade.

He believes that formulating artificial intelligence regulations is very important for U.S. regulators because the potential risks span financial markets.

He pointed out that most of the SEC's regulations target specific institutions, specific banks, specific money market funds, and specific individuals. However, the AI ​​models used by financial institutions may come from technology companies and are not within the jurisdiction of the SEC.

Wall Street has deployed many big models, Gary Gensler worries,All parties making decisions based on the same data model can lead to herd behavior that undermines financial stability and triggers the next crisis.

Regulators around the world are grappling with how to regulate artificial intelligence, as tech groups and their models don't naturally attract the attention of specific regulators.

The European Union has moved quickly to draft tough measures against the use of artificial intelligence in a groundbreaking law that is due to be fully approved by the end of this year. The U.S. is reviewing the technology to determine which aspects require new regulation and which require compliance with existing laws.

The U.S. Federal Trade Commission launched a review of ChatGPT maker OpenAI in July, focusing on harm to consumers and data security. Antitrust agencies have warned that AI’s structural dependence on scale could lead to technology monopolies.

Risk warning and disclaimer

The market is risky and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained in this article are appropriate to their particular circumstances. Invest accordingly and do so at your own risk.