What role will AI play in the next crisis? Is it the one the authorities expect?

Artificial intelligence speeds up and intensifies financial crises and makes them harder to resolve. We need AI to meet the stability challenges posed by AI, only to find it is least reliable when needed the most. That problem is compounded because the authorities are likely to rely on the same models as the private sector while facing tighter restrictions on how they can use them. That combination endogenously makes it more likely that a containable shock becomes a systemic crisis.