How AI can undermine financial stability. Jon Danielsson.

How AI can undermine financial stability

January 22, 2024
As artificial intelligence makes inroads into the financial system, it exacerbates existing channels of instability and creates new ones. This column identifies several such channels, malicious and misinformed use, misalignment and the evasion of control, and finally risk monoculture and oligopolies. All arise when AI vulnerabilities interact with economic fragilities like strategic complementarities, problems of incentives, and incomplete contracts.

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Artificial intelligence and financial stability
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Models and risk
Bloggs and appendices on artificial intelligence, financial crises, systemic risk, financial risk, models, regulations, financial policy, cryptocurrencies and related topics
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