SEC Chief Cautions Widespread Finance AI Could Spur Herd Behavior and Crisis
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SEC chair Gary Gensler warns widespread use of identical AI models could trigger herd behavior and financial crisis.
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Finance industry already adopting AI tools, while regs focus on individual firms not systemwide risks.
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Gensler admits current regs ill-equipped to address AI's systemwide impacts.
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Cross-regulatory cooperation needed to create framework governing finance AI.
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Gensler promises SEC will do its best within legal constraints, but seems resigned to AI causing crisis.
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