Gary Gensler, Chair of the Security and Exchange Commission (SEC), has warned that the development of artificial intelligence (AI) for financial markets applications by big tech companies could destabilize the global economy. In a speech to the National Press Club in Washington, Gensler stated that AI could increase financial fragility and promote herding behavior among individual actors.

While he did not provide details on how AI applications would impact the financial system, Gensler emphasized the need for regulation to prevent the technology from exacerbating risks to the global financial system. He also noted that current risk management tools are insufficient to address the risks posed by advanced AI tools.