Of Course it Will

Gary Gensler, the head of the SEC is warning that basically inevitable that artificial intelligence will cause another stock market crash.

Every single technical innovation that has been applied to the finance industry has resulted in fraud, or crashes, or both:

The head of the US Securities and Exchange Commission Gary Gensler has warned that the increasing use of AI systems will almost certainly crash financial markets at some point in the coming decade.

Gensler said that the current free-for-all over AI development told the Financial Times such a crash was "nearly unavoidable" unless regulators stepped in to control how the technology is used. He said he was talking to other regulators and the government about how to remedy a potentially catastrophic situation.

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It wouldn't be the first time computers have played merry hell with the financial markets, most recently the 2010 flash crash that briefly wiped out nearly a trillion dollars in value. A British trader has been accused of causing the issue with bogus orders, which then triggered automated selling of stock before humans stepped in.

To head off the next one, Gensler wants the SEC and other American regulators to take another look at the potential for crash-inducing code. But it was a new and uncertain area and he worries that progress may be difficult.

Fraud and insider trading is built in to our current finance system. 

That they would use new technology to further their ill gotten gains to the detriment of the market, or the economy is a given. 

Of course it's going to blow up.