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European Central Bank (ECB) Central Bank Governor Warns That Artificial Intelligence Could Pose a Risk of a Financial Crisis
Svmuu News European Central Bank (ECB): ECB President Lagarde stated that artificial intelligence has the potential to trigger a financial crisis, and European Central Bank (ECB) is determined to ensure that this does not happen.“Even with a sound regulatory framework, we cannot stop the development of artificial intelligence,” Lagarde said on Wednesday. “What we can do is be prepared.” She warned that the real risk lies not in artificial intelligence itself, but in the turmoil that could ensue once this disruptive new variable enters the real world. Lagarde said: “In recent history, there is one force that has destroyed more jobs and eroded more savings than any technological innovation—and that is financial crises. As these systems become more powerful, they are penetrating deeper and deeper into the economy.” European Central Bank (ECB) She will next write to bank CEOs to ensure they are prepared for AI attacks and possess sufficient resilience, while also understanding that addressing these risks will require significant investment. Lagarde believes that, ultimately, some form of global AI governance mechanism will need to be established, similar to the nuclear non-proliferation agreements that helped maintain global security at the height of the Cold War. (Jin Shi)
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