US Financial Market Regulator Sounds Alarm Regarding AI’s Growing Risks
“AI poses growing risk to financial markets, US regulator cautions”
“As regulators contemplate how to prevent future debacles, some are warning that artificial intelligence (AI) poses a growing risk to financial markets.” A chilling quote directly from the horse’s mouth, and by horse, we do mean the U.S. regulators who seem to have embraced the tech-phobia that’s become rather trendy lately.
The financial markets, our favorite playground reserved solely for the risk-averse big boys, are now apparently under siege from the AI boogeyman. Yes, indeed, they’ve been singled out, presumably for their nasty habit of crunching ridiculous amounts of data and swiftly making decisions, all without breaking a sweat or needing to take a lunch break. God forbid technology should try and aid human activity, right?
The panicked cries of the U.S. regulator echoes in the great halls of Wall Street, foreseeing that AI’s inherently predictive nature could result in unsettling market fluctuations. This assertion is ironically humorous. Considering human error and impulse driven actions have been the reason for many downturns in the past, blaming AI, an entity devoid of such irrationality, is almost laughable.
AI systems, with their binary brains, in theory, could disrupt the market as they might all make similar predictions, causing cascading affects. This sure sounds like a science-fiction movie trailer, doesn’t it? It appears man-made technology has suddenly grown a mind of its own and participates in synchronized swimming in the financial markets.
In fairness, it does make sense to monitor and regulate the activities of AI in the financial sector. They’re new and can be pretty disruptive. But attributing serious threats to the very technology that was built to optimize processes seems a tad over-dramatic.
Could AI really stir up major financial instability? Potentially. But isn’t the beauty of risks that they come with the potential for rewards? Possibly these jitters are symptomatic of a need to adapt and evolve our regulations, rather than being symptoms of an AI-driven apocalypse. It’s time to perhaps step down from the high horse of fear, and instead, begin to navigate through the rivers of change.