In a recent article for the European Money and Finance forum, BWC Member Daniel Daianu writes about AI and cyber attacks. 

AI can augment speculative behavior and foster panic, more instability, especially when financial markets are not adequately regulated. 

Human judgement cannot be replaced by non-human intelligence in nontrivial aspects. Not least, because AI tools are trained on past data, that may not reflect reality in extreme circumstances. This has implications for monetary, financial stability, and macroprudential policies.

AI can lead to the destruction of many jobs. Without a considerable creation of new jobs, there will be widespread “destructive disruption”, with very serious economic and social implications, including financial disruptions.

AI needs to be regulated and the regulation and supervision of finance should be strengthened and be all encompassing.

To continue reading at The European Money and Finance Forum, click here.

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.