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Could AI Trigger the Next Financial Crisis?

Thierry Foucault explains how AI transforms financial markets, the risks of short-term focus, and the potential for instability in global finance.

42 minutes
Key findings
  • AI processes vast data to produce forecasts, shifting focus from long-term to short-term decisions.
  • Algorithmic trading and self-learning models can behave unpredictably, risking market volatility.
  • Human expertise is displaced in finance, but hybrid models combining AI and human insight perform best.
  • AI may indirectly affect the real economy by influencing corporate investment decisions.

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profile - Knowledge - Thierry Foucault
Meet the Author
Prof. Thierry Foucault
HEC Foundation Chaired Professor - Finance

Thierry Foucault is HEC Foundation Chaired Professor of Finance at HEC Paris. He studies how technologies like AI and big data transform financial markets. His research reveals how these shifts impact trading, asset management, and investment decisions - helping market professionals and policy...

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