gettyimagesbank
Artificial intelligence (AI) could undermine financial market stability as the investment tools developed by AI share core technology, which in turn, could lead investors exposed to wider risk, a report showed on Sunday.
Released by the Korea Institute of Finance, the report, “Underlying risks of AI against financial market stability and possible responsive measures,” said a range of AI-developed tools may end up being similar as they interconnect.
Such resemblance and uniformity can cause a financial crisis as tool users could make identical mistakes when the market is volatile or depressed, states unpredictable by even AI.
“It should be warned that AI can bring a financial crisis, even without malfunction of AI algorithms, misuse of related technology or intentional mistakes involving the human being,” the report said.
The report is in line with the warnings from U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Also a former professor at the MIT Sloan School of Management, he said just a few A.I. companies will build the foundational models that underpin the tech tools that lots of businesses will come to rely on.
Correspondingly, interconnections will deepen across the economic system, making a financial crash more likely because investors will rely on the same information and respond similarly.
![[INTERVIEW] Hip-hop group Uptown returns after 13 years with new lineup](https://img.koreatimes.co.kr/upload/thumbnailV2/0eae35da5e9c40c38cf439e550a2eb3e.jpg/dims/resize/178/optimize)
![[INTERVIEW] ASTRO members aim to shine in musical theater](https://img.koreatimes.co.kr/upload/thumbnailV2/df16760dc50f469d93434f66a069465c.jpg/dims/resize/178/optimize)
