The US Securities and Exchange Commission (SEC) has expressed concern about generative AI’s impact on financial markets.
In a speech given to the National Press Club on Monday, 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 large 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. If a model provides inaccurate or irrelevant information, financial institutions may end up using the same flawed data and making the same bad decisions — creating the risk of something like the 2008 financial crisis, where banks…