AI could fundamentally alter market dynamics – Fed study
Tech is not purely algorithmic as it has inherited human biases, say authors
Artificial intelligence-led investment poses risks to financial stability as well as conferring benefits, find authors with the Federal Reserve Board.
The paper by Anne Lundgaard Hansen and Seung Jung Lee, published on September 25, argues that the technology is not purely algorithmic as it comes with inherited human bias.
“The introduction of AI agents could fundamentally alter market dynamics in ways that are not yet fully understood,” the researchers explain. They write that the combined
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