ECB President Warns AI Could Trigger Financial Crisis

Odaily, 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 be prepared," Lagarde said on Wednesday. She warned that the real risk is not AI itself, but the potential turmoil it could unleash as this disruptive new variable enters the real world.

"In modern history, one force has destroyed more jobs and eroded more savings than any technological innovation: that force is the financial crisis," Lagarde stated. "As these systems become more powerful, they are penetrating deeper and deeper into the economy." The ECB will next write to bank CEOs to ensure they are prepared for and resilient to AI attacks, while understanding that significant investment is needed to address related risks. Lagarde believes that ultimately, a form of 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)