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AI to Spark Markets Crash in Next Decade: SEC Chair – Insider

Gary Gensler said it was ‘nearly unavoidable’ that the next financial crash would be sparked by an AI model being used somewhere in the banking system

With local stock markets struggling this year, Chinese investors have been seeking to diversify via ETFs and the QDII scheme, with interest in US stocks, as well as Vietnam and India.
SEC chairman Gary Gensler called for urgent regulation of the AI sector.


AI will almost certainly spark a financial crisis, the chair of the US markets watchdog has warned, as he called for urgent regulation of the new technology, The Insider reported.

US Securities and Exchange Commission chief Gary Gensler told the Financial Times that it was “nearly unavoidable” that AI would spark a markets crash in the next decade, and said a reliance on models developed by tech companies could lead to economic chaos.

Gensler said there needed to be AI regulation that includes the AI models built by tech companies and how they are used by Wall Street banks, the report went on.

Read the full story: The Insider


  • By Sean O’Meara


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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.


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