Robots in Finance Bring New Risks to Stability, Regulators Warn
- Financial Stability Board issues paper on AI, machine learning
- Firms are rapidly adopting artificial intelligence, FSB says
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Banks and hedge funds that rely on artificial intelligence threaten to inject risks into the financial system that could exacerbate a future crisis, according to global regulators.
The financial industry’s rush to adopt AI raises the potential that firms will become overly dependent on technologies that herd them toward the same view of risks and could “amplify financial shocks,” according to a study published on Wednesday by the Financial Stability Board, a panel of regulators that includes the U.S. Federal Reserve and European Central Bank.