Gary Gensler has warned that the excessive reliance on artificial intelligence (AI) by institutions could potentially result in a financial crisis. He believes that if institutions become too dependent on AI algorithms for making financial decisions, it could lead to unintended consequences and systemic risks. Gensler’s concerns stem from the fact that AI algorithms are not infallible and can be prone to biases or errors. Therefore, he emphasizes the need for proper oversight and regulation to ensure that the use of AI in the financial industry remains balanced and does not jeopardize the stability of the global economy.
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