SEC Boss Says AI-Triggered Financial Crisis ‘Nearly Unavoidable’ Without Regulation

Without regulations in place, the boss of the SEC expects a financial crisis stemming from the widespread use of artificial intelligence in the next decade.

U.S. Securities and Exchange Commission chairman Gary Gensler testifies during a Senate Banking Committee hearing on Capitol Hill in Washington on Sept. 12, 2023.Drew Angerer/Getty Images

United States Securities and Exchange Commission (SEC) Chair Gary Gensler believes a financial crisis stemming from the widespread use of artificial intelligence (AI) is “nearly unavoidable” without swift intervention by regulators.

In an interview with the Financial Times, Mr. Gensler outlined why, in his opinion, regulators must quickly find a way to manage risks posed to financial stability by the concentration of power in artificial intelligence platforms.