SEC worried about AI’s influence on financial markets

Stefan Mileschin · 20th July 2023, 06:11

This could make life even more volatile

The US Securities and Exchange Commission (SEC) has expressed concern about generative AI’s impact on financial markets and fears that traders who rely on the tech could make a real mess of things.

In a speech to the National Press Club, SEC Chair Gary Gensler said recent advances in generative AI increase the possibility of institutions relying on the same subset of information to make decisions.

Gensler said the significant demand for data and computing power could mean only a few tech platforms may dominate the field, narrowing the field of AI models companies can use.

He said: “AI may heighten financial fragility as it could promote herding with individual actors making similar decisions because they are getting the same signal from a base model or data aggregator,”

Gensler said. He added that the rise of generative AI and other deep-learning models “could exacerbate the inherent network interconnectedness of the global financial system.”

https://fudzilla.com/news/57276-sec-...ancial-markets

20th July 2023, 06:11	#1
Stefan Mileschin [M] Reviewer Join Date: May 2010 Location: Romania Posts: 148,802	SEC worried about AI’s influence on financial markets This could make life even more volatile The US Securities and Exchange Commission (SEC) has expressed concern about generative AI’s impact on financial markets and fears that traders who rely on the tech could make a real mess of things. In a speech to the National Press Club, SEC Chair Gary Gensler said recent advances in generative AI increase the possibility of institutions relying on the same subset of information to make decisions. Gensler said the significant demand for data and computing power could mean only a few tech platforms may dominate the field, narrowing the field of AI models companies can use. He said: “AI may heighten financial fragility as it could promote herding with individual actors making similar decisions because they are getting the same signal from a base model or data aggregator,” Gensler said. He added that the rise of generative AI and other deep-learning models “could exacerbate the inherent network interconnectedness of the global financial system.” https://fudzilla.com/news/57276-sec-...ancial-markets

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Facebook notes “coordinated political influence campaign”	Stefan Mileschin	WebNews	0	5th August 2018 18:24
Facebook's influence on Instagram	Stefan Mileschin	WebNews	0	16th April 2018 10:06
Russian trolls used Tumblr to influence American voters	Stefan Mileschin	WebNews	0	13th February 2018 19:17
SoundCloud shows how its algorithms influence music streams	Stefan Mileschin	WebNews	0	21st November 2017 05:31
Google also found evidence of Russian influence in US election	Stefan Mileschin	WebNews	0	12th October 2017 04:44
Royal Academy of Arts will showcase VR's influence on artists	Stefan Mileschin	WebNews	0	10th September 2017 13:57
Zuckerberg says Facebook didn't influence the election	Stefan Mileschin	WebNews	0	13th November 2016 14:36
Human climate influence means we're skipping an ice age	Stefan Mileschin	WebNews	0	14th January 2016 11:14
Google and Facebook to influence financial services	Stefan Mileschin	WebNews	0	11th October 2012 06:56