Jon Danielsson, Director of SRC, gives an online seminar on Artificial Intelligence and Systemic Risk on 24th October, organised by the Florence School of Banking & Finance.
Artificial intelligence (AI) is rapidly changing how the financial system is operated, taking over core functions because of cost savings and operational efficiencies. AI will assist both risk managers and microprudential authorities. By the same token AI has also the potential to destabilise the financial system, creating new tail risks and amplifying existing ones due to procyclicality, endogenous complexity, optimisation against the system and the need to trust the AI engine.
Jon Danielsson discusses this topic on the basis of the most recent results of his research, published in a paper in June 2019. The presentation is followed by the intervention of a discussant and a Q&A session with the public. The video recording is available here.
