SEC Chairman Gary Gensler recently issued a warning, pointing out that the financial crisis triggered by artificial intelligence (AI) is "almost inevitable" in the absence of effective regulation. Gensler stressed that with the widespread use of AI technology in the financial field, the challenges faced by regulators are becoming increasingly severe. The complexity and cross-institutional dependence of AI make regulatory tasks extremely difficult, especially when multiple institutions share the same underlying model, potential risks are more difficult to control.
Gensler further explained that AI applications in the financial field not only involve technical issues, but also coordination and cooperation between multiple regulatory agencies. At present, the SEC has proposed a series of new regulations to try to meet the challenges brought by AI. However, these regulations do not fully address the so-called "horizontal problem" that multiple institutions based on the same AI model may lead to group thinking, thereby amplifying systemic risks. This group thinking often plays a role in fueling the financial crisis, so regulators must be highly vigilant.
To address this challenge, Gensler calls on regulators to find a balance between technological innovation and financial stability. He pointed out that the development of AI technology has brought unprecedented opportunities to the financial industry, but it is also accompanied by huge risks. If regulation is not effective, AI could become a catalyst for the financial crisis. Therefore, regulators need to take more proactive measures to ensure that the application of AI does not threaten the stability of the financial system.
In addition, Gensler also emphasized the importance of cross-institutional collaboration. He believes that only through the close collaboration of various regulators can the complex problems brought about by AI be effectively dealt with. Especially in the development and deployment of AI models, regulators need to establish a unified regulatory framework to ensure the transparency and interpretability of the model. This not only helps prevent systemic risks, but also enhances public confidence in the financial market.
In general, Gensler's warning reminds us that although the application of AI technology in the financial field has broad prospects, it must be treated with caution. Regulators need to prepare for the future and formulate more complete regulatory policies to ensure that the development of AI can bring real value to the financial industry, rather than becoming the fuse of the crisis.