USA - Ekhbary News Agency
Senator Elizabeth Warren, a key figure in establishing consumer financial protection after the 2008 recession, has issued a stark warning regarding the burgeoning artificial intelligence sector. Speaking at a policy event, Warren highlighted striking parallels between the AI industry's current financial landscape and the precursors to the 2008 financial meltdown, despite acknowledging AI's immense potential.
She pointed to the massive spending and borrowing habits of AI companies, which often rely on opaque private credit funds lacking traditional regulatory oversight. Warren cautioned that if these companies cannot rapidly increase revenues to service their substantial debt loads, a significant stumble could lead to widespread panic and destabilizing losses across the financial sector. She emphasized that the interconnected nature of AI financing, linking banks, insurers, and pension funds, could amplify any downturn into a systemic crisis.
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Proposing a solution, Warren advocated for severing these risky financial ties, comparing it to separating investment banking from commercial banking through measures like the Glass-Steagall Act. She also called for a new digital regulator to oversee antitrust, privacy, and consumer protection, and urged Congress to refrain from bailing out the industry should it falter, stressing the critical need for accountability.
