It is 'nearly unavoidable' that AI will cause a financial crash within a decade, SEC head says

Is it because replacing employees with AI results in a never-ending cascade where your stupid system doesn't keep consuming because AI don't consume and won't get paid?

Or is it because using AI will result in the climate to continually become more inhospitable?

Maybe it will be because AI will be used to create more and more believable misinformation that results in WW3?

So do I collect my economic Bingo winnings after the 4th or 5th major crash of my adult lifetime?

Bears have predicted 100 of the last 3 market crashes

And then we finally eat the rich, right?

Permanently Deleted

Fuck Gary Gensler. Dude tries to influence the market just to line his own pockets.

He should not be the head of the SEC.

They've been fucking with automated trading for decades though, unless you're going to try to convince me that there's a human investing in a trillionth of a company for a hundredth of a second at a time.

It's already caused "flash crashes" before. https://en.wikipedia.org/wiki/2010_flash_crash

The idea of investing in companies because you believe in them and want a share of their profits is sound enough I guess, but what it's morphed into is nonsense. The result is a system where you have trillion dollar companies that never actually turn a profit in favour of "growth".

The crash is already in motion and it was not AI that caused it. This is just getting us ready for who to blame when it crashes.

Many stocks have been far oversold and there is no way to reset it without the rich losing it all.

This is how they will reset it and protect the rich.

Is this before or after it destroys the economy for everyone but the super rich by replacing them and making them compete for fewer and fewer scraps? Sorry, there will be lots more new jobs created by AI probably, like AI wrangler, AI safety consultant and the like. Probably.

Pretty sure that crash is more the fault of the greedy shits who think it's normal for 4 folks to own 50% of the country while 50% owns 2% of the country. Don't need AI to tell you that system isn't sustainable.

AI is just a convenient excuse and you know that.

Good, let it all collapse. I want to see the 1% shit themselves before climate change kills them.

Financial expert predicts that (what is already) the longest bull market in world history will end within the next 10 years? And the thing that the world's largest companies are investing the most in might play a roll in that?

Bold.

Lmao yeah. They need someone to blame for upcoming crash lol.

Heavy doubt on this one.

There is still so much misunderstanding on the state of AI and its potential based on current technology (spoiler: reduce your expectations significantly). How can you expect anyone to make predictions with such misunderstanding.

That said it kinda seems like a financial crash is already happening, regardless of AI.

The SEC means: Security, and Exchange Commission. In case anybody like myself hates abbreviations, and have to look it up on Google to see what it even means

then maybe they should do something about it.... its not like they do not have time...

And? Is it something this person thinks we would avoid without AI? You would need a lot of faith that 'the market' won't dunk on itself some other way. What a non-statement..

I mean, a few communities I'm a part of have been warning about this since c. 2014, so I think he's actually correct in his prediction. I haven't read the article, but I don't think any solution he'd propose would be good regardless, so I think I'll just save my time. TLDR: failing a real leftist paradigm shift, we need global welfare like 5 to 10 years ago and UBI.

This is the best summary I could come up with:

The chair of the SEC has warned that AI could trigger a financial crisis, as Wall Street rushes to adopt the new technology.

Gary Gensler told the Financial Times that it was "nearly unavoidable" that AI would cause a financial crash as soon as the late 2020s or early 2030s, and said that reliance on models developed by tech companies could lead to economic chaos.

Wall Street banks have been enthusiastic adopters of generative AI since the splashy launch of ChatGPT last year.

Morgan Stanley launched an AI assistant based on OpenAI's GPT4 model to help employees access market information last month.

Rival JPMorgan, meanwhile, has reportedly filed a patent for an AI model known as 'IndexGPT' that would help traders choose securities to invest in.

The SEC did not immediately respond to a request for comment from Insider, made outside normal working hours.

The original article contains 326 words, the summary contains 144 words. Saved 56%. I'm a bot and I'm open source!

Yay

what doesn't cause a financial crash?

Weird shaped head.

The SEC is full of shit