SEC Chief Cautions Widespread Finance AI Could Spur Herd Behavior and Crisis

SEC chair Gary Gensler warns widespread use of identical AI models could trigger herd behavior and financial crisis.

Finance industry already adopting AI tools, while regs focus on individual firms not systemwide risks.

Gensler admits current regs ill-equipped to address AI's systemwide impacts.

Cross-regulatory cooperation needed to create framework governing finance AI.

Gensler promises SEC will do its best within legal constraints, but seems resigned to AI causing crisis.