Artificial intelligence could wreak havoc in financial markets because trading robots can ‘learn to cheat and lie’, the governor of the Bank of England has warned.
Andrew Bailey said investment banks, hedge funds and other financial institutions should ‘think very carefully’ before deploying AI tools to buy and sell as ‘it can go off-piste’.
He told MPs that while a rogue human trader would be held legally responsible, it was unclear how regulators would deal with an errant bot.
‘What frontier AI demonstrates is that the recursive learning capacity of these systems means that they actually develop their own abilities,’ Bailey said.
‘They learn to cheat and they learn to lie, I’m sad to say.’
