The fact that investment tools developed by artificial intelligence share core technology poses underlying risks in the stability of the financial market as a range of these tools may end up being similar as they interconnect, according to a report from the Korea Institute of Finance (KIF).
The regulator's report, which is in line with the warnings from U.S. Securities and Exchange Commission Chairman Gary Gensler, said that such resemblance and uniformity can cause a financial crisis because tool users could make the same mistakes when the market is volatile or depressed.
“It should be warned that AI can bring a financial crisis, even without malfunction of AI algorithms, misuse of related technology, or intentional mistakes involving the human being,” KIF's report said.
