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Autonomous AI Could Wreak Havoc on Stock Market, Bank of England Warns
The Bank of England warned that AI bots could converge on similar trading strategies, exacerbating downturns or bubbles.
It cited a report by the bank’s financial policy committee that argued autonomous bots might learn volatility can be profitable for firms and intentionally take actions to swing the market. With a small number of foundational models dominating the AI space, particularly those from OpenAI and Anthropic, firms could converge on similar investment strategies and create herd behavior. In recent days, the S&P 500 rose over 7% before crashing back down after a social media post misinterpreted comments by the Trump administration to suggest that it would pause tariffs (which appears to be actually happening now, after an earlier denial).
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