News: 0176991725

  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Bank of England Says AI Software Could Create Market Crisis For Profit (theguardian.com)

(Thursday April 10, 2025 @05:00AM (msmash) from the pushing-boundaries dept.)


Increasingly autonomous AI programs could end up manipulating markets and [1]intentionally creating crises in order to boost profits for banks and traders, the Bank of England has warned. From a report:

> Artificial intelligence's ability to "exploit profit-making opportunities" was among a wide range of risks cited in a report by the Bank of England's financial policy committee (FPC), which has been monitoring the City's growing use of the technology.

>

> The FPC said it was concerned about the potential for advanced AI models -- which are deployed to act with more autonomy -- to learn that periods of extreme volatility were beneficial for the firms they were trained to serve. Those AI programs may "identify and exploit weaknesses" of other trading firms in a way that triggers or amplifies big moves in bond prices or stock markets.



[1] https://www.theguardian.com/business/2025/apr/09/bank-of-england-says-ai-software-could-create-market-crisis-profit



TwinkieGPT (Score:1)

by Tablizer ( 95088 )

Add it to the growing pile of Bottageddon scenarios.

Right (Score:4, Funny)

by pele ( 151312 )

As if we didn't have (algo) trading for decades to do that? And as if we don't have Trump nowdays, so why waste all the engineering effort with AI, he does it just as well.

Re: (Score:2)

by greytree ( 7124971 )

Traders need to control their own agent of chaos and someone Putin already bought the Trump one.

Who needs autonomous AI ⦠(Score:4, Insightful)

by jdha ( 1422319 )

when an American president is already doing all this?

Re: (Score:2)

by jacks smirking reven ( 909048 )

Wait, you know you are kind of agreeing with the parent post right?

Either that or you are arguing that this dip was necessary to happen to drive the stock market up further? Despite the fact that it's clear from your chart the market was already trending upwards. Sure your *1-day* trend line helps your case but why not take a look at the 1-Year and get back to us. Trump once again one-upped by the counterfactual of if he did absolutely nothing instead of using what's left of his brains.

Like there's no way

Re: (Score:2)

by Mr. Dollar Ton ( 5495648 )

Yes, and the president of the US reversed course on trade completely.

So the whole "dip" was due to a brave dash by the morons in the trump administration that have no idea what they are doing.

Now, why did they reverse the course?

Re: (Score:2)

by Vlad_the_Inhaler ( 32958 )

Well, [1]some people used this crisis for profit [ibtimes.sg] but I don't think Marjorie Taylor Greene counts as AI, this is more a classic case of insider trading.

[1] https://www.ibtimes.sg/marjorie-taylor-green-makes-massive-stock-market-moves-secure-her-money-just-days-before-trumps-79356

Take only the markets go back to the 1950's (Score:2)

by jacks smirking reven ( 909048 )

All trades must be done on the floor by a human yelling at another human. [1]You got greedy Martin. [youtube.com]

[1] https://www.youtube.com/watch?v=h-Z8_Mzmqgk

never trust bankers (Score:4, Interesting)

by FudRucker ( 866063 )

[1]https://historyheist.com/the-r... [historyheist.com]

[1] https://historyheist.com/the-rothschilds-waterloo-of-british-finance/

I just had my entire INTESTINAL TRACT coated with TEFLON!