The Verge AI reporting · 1d ago · 2/5
AI failure could trigger the next financial crisis, warns Elizabeth Warren ↗
Sen. Elizabeth Warren, who helped create financial regulation after the 2008 recession, warned at a Vanderbilt event that the AI industry exhibits striking parallels to that crisis. She cited AI companies' rapid spending and borrowing practices as creating financial instability despite the technology's potential.
Warren called for Congress to intervene to prevent a potential financial crisis.
The first big stumble will have everyone running for the exits, potentially triggering destabilizing losses in the financial sector and another 2008-style financial crisis.
I know a bubble when I see one.