In a column published earlier this summer in CEPR, Jon Danielsson, Director of the Systemic Risk Centre at the London School of Economics, and Andreas Uthemann, Principal Researcher at the Bank of Canada, discuss the potential impact of AI on the stability of the financial system.
"Both the private and the public financial sectors are expanding their use of artificial intelligence (AI)," they write. "Because AI processes information much faster than humans, it may help cause more frequent and more intense financial crises than those we have seen so far. But it could also do the opposite and act to stabilise the system."
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