AI expert warns of algo-based market manipulation

An artificial intelligence professor warns of machine learning ‘arms race’ for regulators against those seeking to use new technologies to manipulate financial markets.

“The prospect of supercharged manipulation is likely. We know that manipulation is already a very prevalent practice and so if bodies are doing this, they’re going to try and avail themselves of the latest tools. We would be foolish not to expect to see intentional manipulation enhanced by AI.”

So says Michael Wellman, a University of Michigan professor who earned his PhD in artificial intelligence from MIT in 1988 and has spent his career researching AI and its applications in economics.

As a

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