The AI "industry" is going to cause another financial crises.

Right now every bank is going crazy about AI and they are going all in, they are recruiting "AI experts" from various fields and forking out untold sums of money to make it happen. This is going to cause another financial crisis.<br><br>**Why?**<br><br>1. **Massive Layoffs**: The future holds drastic job cuts in the banking industry. IT roles will be heavily impacted as AI takes over, displacing not only IT staff but also a wide range of banking jobs. Whole departments will be wiped out as AI can do their work faster, cheaper and smarter than anyone.<br><br>2. **Trickle Down Effect**: Banking is a huge sector that employs millions of people worldwide. Large scale job losses will lead to a trickle down effect affecting many associated industries such as real estate, retail and more. These industries will suffer losses and be forced to lay off their own workers.<br><br>3. **Worldwide Recession**: This could lead to a worldwide recession. Job losses on a global scale due to AI in the banking industry will result in less consumer spending power.<br><br>4. **Financial Crises**: The huge investments being made in AI, coupled with looming job losses, could expose banks to great financial risk. In addition to the financial strain from job cuts and loss of revenue, the AI industry's financial instability could exacerbate this crisis. The enormous costs of AI development and implementation could ultimately lead to another financial crisis, putting entire economies at risk.<br><br>5. **Increased Risk of Cyber Attacks**: The shift towards AI will also pose challenges to cybersecurity. Cyber threats are already a major concern for banks, and the integration of AI could heighten this risk. Increased dependence on complex AI systems creates potential weaknesses in security, making banks more susceptible to cyber attacks. This could compromise sensitive customer data and disrupt financial operations, adding to the potential for a crisis.<br><br>6. **Global Market Volatility**: The anticipation of a crisis could bring about further fluctuations in the global market. As investors become aware of the looming crisis, markets may experience increased volatility, leading to market uncertainty.<br><br>7. **Dependence on Cloud Computing**: AI operations run mostly on cloud computing. Relying heavily on cloud services may introduce potential risks, such as data breaches and outages. Any major issues with cloud computing could disrupt banking operations and have severe financial consequences.<br><br>8. **Difficulty in Mitigating Crisis**: If a crisis arises, mitigating it may be challenging due to the AI system's complexity. Resolving AI related issues may be harder than tackling problems with traditional systems, making it more difficult to contain the crisis.<br><br>9. **Lastly, should we be giving the banking industry this much power?**