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The potential and dangers of artificial intelligence
New technologies, and in particularartificial intelligence (AI), are revolutionizing the financial sector. They offer unique opportunities to improve risk management, optimize operational processes and develop new innovative services. However, they also give rise to fears about their impact on financial stability.
Thus, Gary Gensler, president of the Securities and Exchange Commission, recently spoke on this subject, believing that this new technology could be the source of a crisis of 2027 or 2032. According to him, it is important to closely monitor developments in AI and put in place appropriate regulations to avoid such a scenario.
Risks of using AI
- Programming errors : AI relies on complex algorithms that may contain errors or biases, leading to erroneous decisions and potentially dangerous for financial stability.
- Lack of transparency : AI models are often considered “black boxes” whose internal mechanisms are difficult to understand, which complicates supervision and risk control.
- Risk concentration : If multiple market participants use the same AI models, errors or biases could spread quickly and cause a systemic crisis.
Blockchain and decentralized finance: a new revolution?
Alongside the rise of AI, decentralized finance (DeFi), based on blockchain and cryptocurrency technologies, is also gaining importance. DeFi makes it possible to create financial services without a centralized intermediary, thus providing greater accessibility and transparency to users. The International Debt Collection Bank is closely studying the potential of this technology through its innovation center BIS Innovation Hub.
However, DeFi is not without risks to financial stability:
- Volatility of cryptocurrencies : The cryptocurrency market experiences strong fluctuations, which can lead to significant losses for investors and weaken trading platforms.
- Regulation and security issues : DeFi platforms often escape the traditional regulatory framework, which can encourage fraud and scams.
- Risk of contagion : In the event of the bankruptcy of a DeFi platform, losses could quickly spread to other market participants and cause a financial crisis.
Preventing a new financial crisis: the need for appropriate regulation
To avoid a new financial crisis linked to AI or blockchain technologies, it is essential to put in place adapted regulations and one close monitoring risks. Authorities must work together with market players to develop effective standards and control mechanisms.
Avenues for reflection for regulation:
- Transparency and explainability of AI models : Promote the development of intelligible and interpretable models to facilitate the supervision and control of ris
Sources
- https://fr.investing.com/news/economy/lia-sera-la-source-de-la-crise-de-2027-ou-2032-selon-gensler-sec-2178428
- https://www.allnews.ch/content/points-de-vue/la-finance-redefinie
- https://www.boursorama.com/videos/actualites/jean-claude-trichet-la-crise-financiere-n-est-pas-finie-54dac285b0bd22cfa273bbb48df84852
- https://www.surf-finance.com/conditions-bitcoin-explose-nouveau-sommets.html
- https://atlantico.fr/article/decryptage/faillite-des-banques-americaines-vers-une-crise-mondiale-silicon-valley-bank-svb-credit-suisse-marches-financiers-bourse-etats-unis- wall-street-jean-paul-betbeze
