Princeton Economist Warns of AI Risks to Financial Markets at Jackson Hole

Thumbnail Image

The information displayed in the AIM should not be reported as representing the official views of the OECD or of its member countries.

At the Jackson Hole conference, Princeton economist Markus Brunnermeier warned global central bankers about the plausible future risks of AI-powered trading, including market manipulation, volatility, and undermining monetary policy. He urged urgent action to address these hazards before they disrupt financial markets. No actual harm has yet occurred.[AI generated]

Why's our monitor labelling this an incident or hazard?

The article centers on expert warnings about AI's potential to disrupt financial markets through advanced trading algorithms that could anticipate and circumvent central bank actions. While no actual harm or incident is reported, the described scenarios represent plausible future harms involving AI systems. This fits the definition of an AI Hazard, as it involves the plausible risk of significant harm (market manipulation, disruption of monetary policy) stemming from AI use, but no realized harm is documented.[AI generated]
AI principles
AccountabilityDemocracy & human autonomy

Industries
Financial and insurance services

Affected stakeholders
GovernmentGeneral public

Harm types
Economic/PropertyPublic interest

Business function:
Other

AI system task:
Forecasting/predictionGoal-driven organisation


Articles about this incident or hazard