{"id":175379,"date":"2023-10-17T00:36:51","date_gmt":"2023-10-16T19:06:51","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=175379"},"modified":"2023-10-17T00:36:51","modified_gmt":"2023-10-16T19:06:51","slug":"sec-chair-gary-gensler-warns-impending-ai-wrought-financial-crisis-nearly-unavoidable-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/sec-chair-gary-gensler-warns-impending-ai-wrought-financial-crisis-nearly-unavoidable-crypto-news\/","title":{"rendered":"SEC chair Gary Gensler warns impending AI-wrought financial crisis \u2018nearly unavoidable\u2019 – Crypto News"},"content":{"rendered":"
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United States Securities and Exchange Commission chair Gary Gensler has reportedly stated<\/a> that, without some form of intervention, a financial crisis stemming from the widespread use of artificial intelligence was \u201cnearly unavoidable.\u201d\u00a0<\/p>\n

The chair\u2019s comments came during an interview with the Financial Times where, according to the article, Gensler says this crisis could come within a decade. <\/p>\n

The chair\u2019s concerns evidently revolve around the centralization of AI models and cloud service providers.<\/p>\n

Per the interview:<\/p>\n

\u201cI do think we will, in the future, have a financial crisis \u2026 if everybody\u2019s relying on a base model and the base model is sitting not at the broker dealer, but it\u2019s sitting at one of the big tech companies. And how many cloud providers do we have in this country?\u201d<\/p><\/blockquote>\n

Alongside cryptocurrency regulation, artificial intelligence has become one of the SEC\u2019s biggest regulatory challenges. According to the Financial Times, Gensler is concerned about over reliance on similar models (e.g., ChatGPT) leading to herd behavior on Wall Street and throughout U.S. financial markets. <\/p>\n

Related: <\/em><\/strong>Gary Gensler confirms SEC\u2019s use of AI for financial surveillance<\/em><\/strong><\/a><\/p>\n

Gensler\u2019s stance is nothing new. In 2020, along with co-author Lily Bailey, then an MIT research assistant (now working at the SEC as an assistant to the chief of staff, according<\/a> to their LinkedIn page), the chair wrote<\/a> a research paper titled \u201cDeep Learning and Financial Stability\u201d wherein he professed a similar point of view.<\/p>\n

Per the 2020 paper, the increasing use of artificial intelligence systems in the financial system \u201cmay lead to financial system fragility and economy-wide risks.\u201d <\/p>\n

The paper continues with an implicit call for government regulation, \u201cexisting financial sector regulatory regimes – built in an earlier era of data analytics technology – are likely to fall short in addressing the systemic risks posed by broad adoption of deep learning in finance.\u201d<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

United States Securities and Exchange Commission chair Gary Gensler has reportedly stated that, without some form of intervention, a financial crisis stemming from the widespread use of artificial intelligence was \u201cnearly unavoidable.\u201d\u00a0 The chair\u2019s comments came during an interview with the Financial Times where, according to the article, Gensler says this crisis could come within […]<\/p>\n","protected":false},"author":2,"featured_media":175380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-175379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=175379"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175379\/revisions"}],"predecessor-version":[{"id":175382,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/175379\/revisions\/175382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/175380"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=175379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=175379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=175379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}