SEC Chair Says AI Will Likely Spark Next Financial Meltdown
Photographer: Jared Soares/Bloomberg Businessweek

SEC Chair Says AI Will Likely Spark Next Financial Meltdown

Gary Gensler would like to talk about something other than crypto. After two years of battling an industry that he says is riddled with scams and fraud, the head of the US Securities and Exchange Commission is focused on a different technology that has all of finance buzzing: artificial intelligence.


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Unlike crypto, AI warrants the hype, according to Wall Street's top regulator. "This is the most transformative technology of this generation," Gensler says. "We're taking so much of what we humans do on a daily basis and automating it."

Unlike most officials in Washington, Gensler has a long history with the technology. He says he first started thinking about AI when Russian chess grandmaster Garry Kasparov lost to IBM supercomputer Deep Blue in 1997.

Gensler has critiques of AI, but they aren't about the technology itself. In July, he became one of the first regulators to propose rules for AI. His focus is on the risk to markets and investors when AI is making trades and recommendations. He wants to keep finance safe for humans.


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Howard E. Perry

All of my relationships are a positive influence in my life.

1 年

Thanks for sharing

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Dr. Donald Moine

Donald Moine, Ph.D., Industrial and Organizational Psychologist specializing in Sales, Marketing, Financial Services and Business Funding. Executive Coach. International Consultant. Speaker. Author.

1 年

What will Gary Gensler or the next head of the SEC say when AI is able to replace half of the employees at the SEC?

Josh Carpenter

MBA | Senior Director, Customer Support @ Arkestro

1 年

Gensler says he's trying to make AI safe for humans, but his regulatory scope doesn't control AI globally. This means that unregulated factions could gain an advantage, and that may pose a greater threat to humans. This topic is central to my MBA dissertation. If you're interested, you may enjoy this anonymous 4 minute survey, and it will help me a lot to get your input: https://forms.office.com/e/4J3HY0NmMZ - Thanks!

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Richard Arsenault

Innovative Filmmaker, Editor, and Creative Technologist

1 年

Nowhere in the article does it even begin to say that AI is connected with a financial crisis. So why are you sparking this fear, Bloomberg? The reality is that if we did not have AI and new superconductive materials, speed-of-light computing, and quantum computing, then all of the money that we've printed and all the inflation that we've manufactured during the COVID manifesto would never be recuperated. The only way to ever get out of inflation is by new technologies such as AI. The only reason these fearmongers are so afraid of AI is ignorance and support for the companies that are trying to capture the technology, enforce regulations to limit creativity and control the freedom that AI will bring the Americans and the US population. All we can do to avoid people like Gary Gensler and their fear-mongering is to develop AI so quickly that it is so propagated in every aspect of life that it cannot be regulated. Some of these anti-technology people are so absurdly pathological and psychopathic that they say that if you don't have a regulated AI server firm, nuclear airstrikes will be justified.

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