Financial Times/George Steer and Laurence Fletcher/6-15-2023
“Hedge funds and other computer-driven trading firms are growing increasingly concerned about the threat that artificial intelligence presents to their profits, after a fake image of an explosion near the Pentagon triggered a brief sell-off in US stocks.”
USAGOLD note: An existential threat emerges for algo-based trading systems: Instantaneous reaction to fake news. Hedge funds say they’ve erected defenses but the fake Pentagon image and subsequent instantaneous plunge in stocks proves otherwise.