The chair of the US Securities and Exchange Commission, Gary Gensler, has emphasized the urgent need for regulators to address the risks posed by the concentration of power in artificial intelligence (AI) platforms to financial stability. Gensler believes that without swift intervention, it is highly likely that AI could trigger a financial crisis within the next decade. However, he acknowledges that shaping AI regulation is a challenging task for regulators, as potential risks cut across financial markets and stem from models crafted by tech companies that are beyond the reach of traditional Wall Street watchdogs. Gensler highlights the need for a cross-regulatory approach to address the horizontal issue of multiple institutions relying on the same underlying base model or data aggregator. Regulators worldwide are grappling with how to police AI, with the EU taking the lead in drafting tough measures to regulate its use. In the US, the technology is under review to determine which aspects require new regulation and which are subject to existing laws. Gensler’s concerns revolve around the potential for herd behavior and concentration of market makers, which could undermine financial stability and lead to the next crisis. He predicts that a financial crisis triggered by AI could occur as soon as the late 2020s or early 2030s.