MP Wellman
Journal of Financial Transformation, 60:14-19, 2025.
Abstract
The rapid advancement of surprisingly capable AI is raising questions about AI’s impact on virtually all aspects of our economy and society. The nexus of AI and finance is especially salient, building on the impact AI has already had on trading and other financial domains. New AI developments could exacerbate market manipulation, and otherwise create loopholes in regulatory regimes. Anticipating these potential impacts suggests directions for market design and policy that makes financial markets robust to advanced AI capabilities.