Artificial intelligence (AI) could become a threat to financial stability, according to US Treasury Secretary Janet Yellen. U.S. regulators must make that topic their top priority next year.
Yellen said this during a US Financial Stability Oversight Council (FSOC) meeting, which includes the Federal Reserve and the Securities and Exchange Commission. The FSOC was established after the 2008 financial crisis to address systemic risks in financial markets.
According to Yellen, the FSOC has already classified artificial intelligence as a systemic risk due to the threat it can pose to security and privacy. Some AI tools can be highly technical and opaque, potentially producing inaccurate results, according to the FSOC.
Yellen further warned that high interest rates, climate change, and cyber threats could also threaten financial stability.