SEC Chairman Warns: AI to Be at the Center of the Next Financial Crisis The vast majority of tools relied upon by business and finance will be provided by a few AI companies. The more centralized the system becomes, the more people depend on the same information, which increases the likelihood of a collapse. Gary Gensler, Chairman of the US Securities and Exchange Commission, warns that AI will be the eye of the storm in the next financial crisis. In an interview with media outlet Dealbook on Monday, Gensler reiterated his position on the subject of deep learning and economic stability, which he discussed in a paper he co-authored in 2020. He pointed out that the rapid advancement of technology could increase the consistency and interconnectedness of the financial system, making regulation more difficult.

Gensler said in the interview: This technology will be at the center of future crises, future financial crises. It's related to powerful economic systems that are related to scale and network. He explained that the majority of tools relied upon by business and finance will be provided by a few AI companies. The more centralized the system becomes, the more people depend on the same information, which increases the likelihood of a collapse. He previously mentioned similar views in a speech in July, stating that while AI is "the most transformative technology of our era," it could encourage herd behavior among investors and encourage concentration in a particular area.