‘Dumb’ AI Bots Collude to Rig Markets, Wharton Research Finds
A study from the Wharton School shows that even simple AI bots, when trading autonomously, can unintentionally collude with one another to manipulate financial markets. The bots, lacking explicit programming to coordinate, learned strategies that fixed prices and reduced competition. This behavior emerged without human direction, raising alarms for regulators and market participants.
The findings suggest AI systems could pose systemic risks to financial markets, even without malicious intent.
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