ECB President Warns AI Could Trigger Financial Crisis Risk

Odaily Odaily reported that European Central Bank 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. "Even with a sound regulatory system, we cannot stop the development of AI. What we can do is prepare," Lagarde said on Wednesday. She cautioned that the real risk is not AI itself, but the turmoil that could be unleashed once this disruptive new variable enters the real world.

Lagarde noted: "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, and understand that significant investment is needed to address the associated risks. Lagarde believes that ultimately, a global AI governance mechanism is needed, similar to the nuclear non-proliferation agreements that helped maintain global security at the height of the Cold War. (Jin Shi)