ECB President Warns That Artificial Intelligence Could Trigger Financial Crisis Risk

Odaily Planet Daily News ECB President Christine Lagarde stated that artificial intelligence has the potential to trigger a financial crisis, and the ECB is determined to ensure this does not happen. Lagarde said on Wednesday: "Even with a sound regulatory system, we cannot stop the development of AI. What we can do is to be prepared." She warned that the real risk is not AI itself, but the potential turmoil that could be triggered after this disruptive new variable enters the real world.

Lagarde stated: "In modern history, one force has destroyed more jobs and eroded more savings than any technological innovation, and that force is the financial crisis. As these systems become more powerful, they are penetrating deeper into the economy." The ECB will next write to bank CEOs to ensure they are prepared and resilient enough for AI attacks, while understanding that significant investment is needed to address related risks. Lagarde believes that some form of global AI governance mechanism will ultimately be needed, similar to the nuclear non-proliferation agreements that helped maintain global security at the height of the Cold War. (Jinshi Data)