Gary Gensler, the head of the Securities and Exchange Commission (SEC), is worried about how AI could cause big financial problems in the future.
He says that if AI is used a lot in different parts of the economy, it could make big crises happen.
Gensler, who also teaches about money at MIT, thinks that AI might lead to big issues because it’s so widespread and connected. He says, “This tech could be at the center of future money crises. It’s because of how big and connected it is.”
To stop these issues, the SEC wants to make a new rule. This rule would make sure that companies using AI in finance look out for problems and put investors first. They would also need to keep good records.
Gensler is also worried about a few big AI companies having too much power. He’s concerned that this could make everyone follow the same money rules, which could lead to a crash.
He also says that even though AI is a big part of money advice now, people who give advice and make AI need to take care of their clients. They have to be loyal to them and make sure they’re safe.