SEC Chief Warns of Looming AI-Driven Financial Crisis Without New Regulations

SEC Chair Gary Gensler warns an AI-driven financial crisis is likely in the next decade without regulation.

Gensler is concerned centralized AI models at big tech firms could lead to herd behavior in markets.

This stance continues warnings from a 2020 paper Gensler co-authored on AI risks.

The paper called for updating regulations to address systemic risks from AI in finance.

Gensler wants to avoid overreliance on similar AI models homogenizing the financial market.