European Central Bank President Warns AI Could Pose Financial Crisis Risk

BlockBeats News, June 17th — European Central Bank President Lagarde stated that artificial intelligence could potentially trigger a financial crisis, and the ECB is determined to ensure this does not happen. Lagarde said on Wednesday, "Even with a sound regulatory framework, we cannot stop the development of artificial intelligence. What we can do is be prepared." She warned that the real risk is not artificial intelligence itself, but the turmoil that may arise after this disruptive new variable enters the real world. Lagarde said, "In recent history, there has been a force that has destroyed jobs and eroded savings on a scale that surpasses any technological innovation, and that force is a financial crisis. As these systems become more and more powerful, they are increasingly penetrating the economy."

The European Central Bank will next send letters to bank CEOs to ensure they are prepared for AI attacks and have sufficient resilience, while understanding that addressing related risks will require significant investment. Lagarde believes that ultimately, some form of global AI governance mechanism needs to be established, similar to the non-proliferation agreements that helped maintain global security during the peak of the Cold War. (FX Street)