On this week’s episode of Yahoo Finance’s The Crypto Mile, our presenter Brian McGleenon invited Jamie Burke, founder of Outlier Ventures, to speak about the potential risks posed by AI bots acting as complex trading agents on the financial markets operate. Burke pitched the idea of AI agents using specialized trading bots to manage wealth according to an individual’s risk profile.
However, he warned of the possibility of flash crashes when markets become overly automated and rely heavily on popular AI models. These crashes are triggered when market anomalies cause the bots to react unpredictably. While such incidents can be controlled in traditional markets by freezing trades, the automation of various markets leaves no plug to pull, potentially leading to more volatility.
Burke emphasized that while there may be increased volatility in the early stages of AI bot implementation, there is significant business opportunity in developing agents that can help companies and investors manage these risks.
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