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Woofun AI reports that the International Monetary Fund has issued a warning regarding artificial intelligence entering the core of the financial system, transforming transactions, credit, regulation, and infrastructure. The IMF stated that widespread simultaneous use of AI models may amplify market volatility and introduce new systemic risks.
The IMF emphasized that regulators must strengthen governance over AI-driven activities, increase transparency regarding model reliance, and enhance international cooperation. While AI compresses decision-making time and aids liquidity under normal conditions, it may act as a volatility amplifier during stress, potentially triggering an "AI herding effect" and increasing the risk of future "flash crashes." Furthermore, centralized reliance on few cloud providers and data vendors creates network risks, while model opacity complicates regulatory oversight.