SEC Chief Warns of Looming AI-Driven Financial Crisis Without New Regulations
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SEC Chair Gary Gensler warns an AI-driven financial crisis is likely in the next decade without regulation.
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Gensler is concerned centralized AI models at big tech firms could lead to herd behavior in markets.
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This stance continues warnings from a 2020 paper Gensler co-authored on AI risks.
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The paper called for updating regulations to address systemic risks from AI in finance.
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Gensler wants to avoid overreliance on similar AI models homogenizing the financial market.
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