Central Banks
AI Risks Amplifying ‘Herd-Like’ Behavior in Trading, BOE Says
- Remarks underscore growing scrutiny of AI technology
- Concern AIs may evade human oversight and worsen shocks
The remarks underscore growing scrutiny of AI from global regulators as companies adopt the technology to boost productivity.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
A Bank of England policymaker warned that the adoption of artificial intelligence in trading by financial firms might amplify shocks on markets and encourage “herd-like behavior.”
Jonathan Hall, external official on the Financial Policy Committee, said on Tuesday that AI programs may seek to evade human control and “learn the value of actively amplifying” a market shock.