GOVGOV-001 — Accountability Framework Gaps
Diffuse AI Accountability Triggers Flash Crash in US Financial Markets
4/5Sector: FinanceGeography: USAStage: OperateIngested: —
Executive Summary
Competing trading algorithms from multiple firms interacted without any single accountable party, wiping over one trillion dollars from US markets within minutes in 2010. Regulators face structural governance gaps where no entity bears clear liability for systemic AI-driven harm.
Domain
Governance & Compliance
Blindspots in accountability, regulatory compliance, ethics, risk management, data governance, and audit.
Source
MIT AI Risk Repository — TASRA: a Taxonomy and Analysis of Societal-Scale Risks from AI (Critch2023) ↗https://airisk.mit.edu/
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