European Central Bank President Warns AI Could Trigger Financial Crisis Risk

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 prevent the development of AI. What we can do is prepare." She warned that the real risk is not AI itself, but the turmoil that could be triggered by this disruptive new variable entering 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 a financial crisis. 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-driven attacks, while understanding that addressing the related risks requires significant investment. Lagarde believes that, ultimately, some form of global AI governance mechanism will need to be established, similar to the nuclear non-proliferation agreements that helped maintain global security during the peak of the Cold War. (Jin Shi)