Artificial intelligence and financial crises
Fuente:
arXiv
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| Autori principali: | , |
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| Natura: | Preprint |
| Pubblicazione: |
2024
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| _version_ | 1866911040059473920 |
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| author | Danielsson, Jon Uthemann, Andreas |
| author_facet | Danielsson, Jon Uthemann, Andreas |
| contents | The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to analyse the stability impact of AI, finding that it amplifies existing financial system vulnerabilities - leverage, liquidity stress and opacity - through superior information processing, common data, speed and strategic complementarities. The consequence is crises become faster and more severe, where the likelihood of a crisis is directly affected by how effectively the authorities engage with AI. In response, we propose that the financial authorities develop their own AI systems and expertise, establish direct AI-to-AI communication, implement automated crisis facilities and monitor AI use. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2407_17048 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Artificial intelligence and financial crises Danielsson, Jon Uthemann, Andreas General Economics Economics The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to analyse the stability impact of AI, finding that it amplifies existing financial system vulnerabilities - leverage, liquidity stress and opacity - through superior information processing, common data, speed and strategic complementarities. The consequence is crises become faster and more severe, where the likelihood of a crisis is directly affected by how effectively the authorities engage with AI. In response, we propose that the financial authorities develop their own AI systems and expertise, establish direct AI-to-AI communication, implement automated crisis facilities and monitor AI use. |
| title | Artificial intelligence and financial crises |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2407.17048 |