Gary Gensler, United States Securities and Exchange Commission Chair, mentioned that without some form of intervention, a financial crisis stemming from the widespread use of artificial intelligence is “nearly unavoidable,” stated Cointelegraph.
Sources revealed that the chair’s concerns also include the centralisation of AI models and cloud service providers, Cointelegraph added.
“I do think we will, in the future, have a financial crisis […] If everybody’s relying on a base model and the base model is sitting not at the broker-dealer, but it’s sitting at one of the big tech companies. And how many cloud providers do we have in this country,” Gensler explained.
Furthermore, artificial intelligence is also expected to have become one of the SEC’s greatest regulatory challenges. According to With insights from the Financial Times, Gensler is concerned about an overreliance on similar models (e.g., ChatGPT) leading to herd behavior on Wall Street and throughout U.S. financial markets.
(With insights from Cointelegraph)
