AI amplifies systemic risk to financial sector, says India's Reserve Bank boss

The governor of India's Reserve Bank, Shri Shaktikanta Das, yesterday warned that AI – and the platforms that provide it – could worsen systemic risk to the nation's financial system. In a keynote address [PDF] to the RBI@90 High-Level Conference, Das noted that artificial intelligence and machine learning "have opened new …

[O'Reg Inalsin]

Das one smart guy

Every day I see new claims that another OpenAI based trading app is returning massive profits after only weeks of use. With that level of wealth creation, I think we can rest in peace.

[cyberdemon]

Re: Das one smart guy

I realise the above is a joke, but it might need spelling out for the hard of thinking: Trading is Zero Sum, i.e. "wealth creation" = Zero. And anything that claims to return "massive profits after only weeks of use" is generally a Ponzi scheme.

By the time YOU get on board, the sign will have flipped on those "profits", while the effluencers behind the scheme pick the next meme stock.

[ITMA]

Re: Das one smart guy

Or as I used to call it when working in IT for an Italian investment bank in London - conjuring tricks with numbers.

[cyberdemon]

AI amplifies systemic risk to financial sector...

No Shit..!

Let's add a bunch of nonlinear positive-feedback mechanisms to an already chaotic system.. What could possibly go wrong eh? More risk = More Profit, right? Right up until the crash that is. But if you're big enough to weather it, you can buy up all the small fry in the aftermath. Great for Whales! "Buy when there's blood on the streets, even if the blood is your own" supposedly said a Rothschild.

One teeny tiny problem, the world is teetering on the brink of WWIII, and now may not be the best time for a massive global financial crash ... Blood on the streets is one thing, but radioactive fallout is not so good for the futures market.

[Locomotion69]

Finally somebody who understands

I think the opinion of mr. Das is spot-on except for one word.

He stated that ... AI .. could worsen systemic risk...

He might better have said ...AI... is worsening systemic risk ....

His suggestions make sense. But I am afraid nobody listens.

[amanfromMars 1]

Damned if they do and damned if they don't is the Way IT plans it for AI ‽

Social media is also on Das's mind – he observed that "rumors and misinformation" spread on such services have the potential to "cause liquidity stress."

And whenever rumours and misinformation encounter and try to deny observant and easily believable alternative knowledge does social media lead a growing popular movement against a corrupt and rapidly failing, formerly predominant fascist establishment tendency.

And by their own actions and protestations in support of the status quo do main stream media outlets condemn themself to hastening the demise of conventional and traditionally inherited perverted instruments of remote virtual command and control leverage.