AI will be at the center of the next financial crisis, SEC chief Gary Gensler says

• SEC chief Gary Gensler told Dealbook that AI increases the risk of future financial crashes.
• He says a handful of dominant AI models will increase concentration, thereby raises the risk of a crisis.
• “This technology will be the center of future crises, future financial crises,” he said.

Gary Gensler, the chairman of the Securities and Exchange Commission, told Dealbook on Monday that artificial intelligence increases the risk of a financial crisis.

He reiterated a stance he explored in a 2020 paper he co-authored on deep learning and economic stability, noting that a rapid advancement of technology could increase the uniformity and interconnected of financial systems, and make those systems harder to regulate.