As economists and financiers rush to use AI, concerns about whether they understand it should also be considered. Currently, it's believed that a few generative AI giants will be the base of the market. That means a bug in the system could poison the well — or create self-reinforcing market swings as multiple financial businesses use the same base.
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The dangers of letting AI loose on finance
“What if a generative AI model listening to Fedspeak had a hiccup [and infected all the market programs]?” Gensler tells me. “Or if the mortgage market is all relying on the same base layer and something went wrong?”
