The Next Financial Crisis?

Since the splashy launch of ChatGPT in 2022, Wall Street banks have been enthusiastic adopters of generative AI. Obviously an understandable trend since automation and the use of advanced algorithms made their way into the financial world years ago. But not without risks. According to Gary Gensler, chairman of the Securities and Exchange Commission (SEC) – the U.S. financial regulator – it is "nearly unavoidable" that AI will cause a financial crash as early as the late ’20s or early ’30s, and reliance on models developed by tech companies could lead to economic chaos.