U.S. Securities and Exchange Commission (SEC) chair Gary Gensler is sounding the alarm on the transformative impact of artificial intelligence (AI), saying that it may have wide-ranging impacts on the financial markets.
What Happened: Reflecting on a paper he co-authored in 2020 on deep learning and financial stability, Gensler expressed a concern that only a handful of companies might build the core models foundational to the technology many businesses and the U.S. will adopt.
That concentration, Gensler said, will "be the center of future crises, future financial crises."
U.S. reliance on just a handful of foundational models is going to cause a "herding" effect where businesses and investors rely on the same model or dataset, the SEC chair said, according to the New York Times. This will lead to uniform reactions, deepening the interconnectedness of the economy which could make a broader crash more likely.
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Gensler is also flagging whether AI tools on trading apps like Robinhood Markets Inc HOOD which analyze investor behaviors actually prioritize the investor, or if something more nefarious is in the works.
"You're not supposed to put the adviser ahead of the investor, you're not supposed to put the broker ahead of the investor," Gensler said, pointing to the potential pitfalls lurking in AI models.
If an AI chatbot gives flawed financial advice, whos to blame? Gensler is firm in his stance. The duty of care and loyalty rests with investment advisers, regardless of whether they use algorithms. The debate on the legal liability of AI is far from settled, but Gensler believes companies should establish fail-safe mechanisms.
He emphasized, as reported by The New York Times, that while chatbots like OpenAI's ChatGPT may seem autonomous, there are humans behind the design, parameters, and operations.
Hence, responsibility cannot be offloaded solely onto the tech.
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Union leaders are demanding no eleventh-hour retreat by the government on workers’ rights now their champion Angela Rayner is no longer in the cabinet.
As delegates gather in Brighton for the TUC’s annual conference, the movement’s leadership is claiming four million people – one in eight of the UK workforce – are in “pervasive” insecure work.
And union bosses are urging the government to stand firm and reject attempts by Tories and Liberal Democrats to weaken the former deputy prime minister’s Employment Rights Bill in its final stages in parliament.
The TUC’s general secretary, Paul Nowak, has claimed Ms Rayner, who resigned on Friday over unpaid stamp duty on a seaside flat, was a victim of misogyny and was being hounded out by right-wing politicians and right-wing media.
Image: Paul Nowak believes Angela Rayner was a victim of misogyny
As well as Ms Rayner leaving the government, the other minister driving the bill through parliament, Jonathan Reynolds, was demoted in Sir Keir Starmer’s cabinet reshuffle from the senior post of business secretary to chief whip.
Until last week, Ms Rayner had been expected to deliver the keynote Labour Party speech at the TUC on Tuesday, but it emerged midweek that the education secretary, Bridget Phillipson, would be the speaker.
However, in Friday’s reshuffle she lost responsibility for adult skills – a key issue for the unions – to the new work and pensions secretary Pat McFadden, who will now head a new, beefed-up super-ministry promoting growth.
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And ironically, the TUC conference in Brighton is taking place less than two miles from the luxury seaside flat in Hove, on which Ms Rayner’s avoidance of £40,000 in stamp duty led to her resignation as deputy PM, housing secretary and Labour deputy leader.
Just before parliament’s summer recess, the House of Lords backed by 304 votes to 160 a Tory-led amendment to Ms Rayner’s bill to reduce the qualifying period for unfair dismissal claims from two years to six months, rather than from day one, as proposed by Ms Rayner.
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The rise and fall of Angela Rayner
Third reading of the bill in the Lords was last Wednesday, the day of Ms Rayner’s Sky News confession, and the bill is now set for parliamentary ping-pong, assuming the government overturns the Lords’ amendments in the Commons.
But in a pre-conference interview with Sky News, TUC chief and Rayner supporter Mr Nowak demanded no diluting of her bill, which also includes banning zero hours contracts which exploit workers and fire and rehire.
“We are now at a crucial stage in the delivery of the Employment Rights Bill, just weeks away from Royal Assent,” said Mr Nowak. “And our clear message to the government will be to deliver the bill and deliver it in full.
“Ignore the amendments from the unelected peers, Tory and Lib Dem peers in the House of Lords, that are aimed at gutting the legislation, weakening workers’ rights.
“Stand with the British public, deliver decent employment rights. That’s important in workplaces up and down the country, but it’s important because these are proposals that are popular with the British public as well.”
Image: Education Secretary Bridget Phillipson will be making a speech at the TUC’s conference
The TUC says its analysis shows low-paid jobs in occupations such as the care, leisure and service sectors account for 77% of the increase in insecure jobs since 2011.
Black and ethnic minority ethnic workers account for 70% of the explosion in insecure work, according to the TUC, and southwest England and Yorkshire and Humber are insecure work hotspots.
Mr Nowak told Sky News: “We’ve got well over a million people now on zero-hours contracts. We’ve got millions of people who don’t have sick pay from day one and 70% of the kids who live in poverty have parents who go out to work.
“The government is absolutely right to be focused on making work pay. And the Employment Rights Bill is about putting more money in the pockets of working people, giving people more security at work.
“That’s good for workers, but it’s also good for good employers as well, so they’re not undercut by the cowboys.”
“Angela Rayner is playing a really important role in government and I wouldn’t want to see her hounded out of an important role by right-wing politicians and the right-wing media, who frankly can’t handle the fact that a working-class woman is our deputy prime minister.”
Londoners face almost a week of travel disruption when Underground workers go on strike next week.
There will be limited or no services for several days, and those services that are still running are expected to be busier than usual.
Members of the Rail, Maritime and Transport union (RMT) voted overwhelmingly for strike action after nine months of negotiations failed to resolve a long-running dispute over pay and conditions.
Transport for London (TfL) has offered a 3.4% pay rise which it described as “fair” but said it cannot afford to meet the RMT’s demand for a cut in the 35-hour working week.
Further talks have also failed to end in an agreement, but Nick Dent, London Underground’s director of customer operations, said it was not too late to call off the strikes before causing chaos in the capital.
Here is all you need to know.
When are strikes planned?
Strikes are planned from midnight on Sunday 7 Septemberto 11.59pm on Thursday 11 September.
There is separate planned industrial action on 5 and 6 September, but this is not expected to cause disruption on TfL services.
The other days, however, will see delays across every underground line and the Docklands Light Railway (DLR).
Image: Tube services will be limited for five working days next week. File pic: PA
What’s running – and what’s not?
Sunday 7 September:
• Disruption across the entire Tube network, with limited services running • Those that are running will finish early, with TfL encouraging people to finish journeys by 6pm • The DLR will be running a normal service
Monday 8 September:
Tube • Little to no service running across the entire Tube network • No service before 8am or after 6pm
DLR • Full service, but stations shared with the Tube network may face disruption
Tuesday 9 September:
Tube • Little to no service running across the entire Tube network • No service before 8am or after 6pm
DLR • No service on the entire network
Wednesday 9 September:
Tube • Little to no service running across the entire Tube network • No service before 8am or after 6pm
DLR • Full service, but stations shared with the Tube network may face disruption
Thursday 11 September:
Tube • Little to no service running across the entire Tube network • No service before 8am or after 6pm
DLR • No service on the entire network
Friday 12 September:
Tube • No service before 8am • Service will return to normal on all lines by late morning
DLR • Normal service
What about the Elizabeth Line and Overground?
The Elizabeth Line, London Overground and trams will be running on strike days. London’s bus network is also expected to be running a full service.
However, TfL warns other services will be extremely busy and trains may be unable to stop at all stations or run to their normal destinations.
Image: No strikes are planned on the Elizabeth Line, but trains will not stop at some stations. Pic: iStock
On Monday 8 and Wednesday 10 September, the Elizabeth line will not stop at the following stations before 7.30am and after 10.30pm:
• Liverpool Street • Farringdon • Tottenham Court Road
On Tuesday 9 and Thursday 11 September, trains will not stop at the same stations before 8am.
How to get around during the Tube strike
As always during industrial action, TfL urges commuters to plan ahead and allow extra time for their journeys.
To do this, use TfL’s journey planner, or apps including City Mapper.
Cycling or walking is also recommended by TfL, with Santander, Lime and Forest bikes available to hire across the capital, as well as electric scooters in some London boroughs.
Image: TfL recommends commuters use bikes or walk round London during strikes. Pic: iStock
The band posted a statement on social media to say their Music Of The Spheres shows on 7 and 8 September have been rescheduled to 6 and 12 September respectively.
“Without a Tube service, it’s impossible to get 82,000 people to the concert and home again safely, and therefore no event licence can be granted,” the band said.
The Metropolitan Police has condemned the “intolerable” abuse allegedly suffered by officers who were “kicked and spat on” as they arrested more than 400 people at a protest against the banning of Palestine Action as a terror group.
The arrests were made on Saturday at a protest in London against the banning of the proscribed terror group.
Deputy Assistant Commissioner Claire Smart, who led the policing operation, said: “In carrying out their duties today, our officers have been punched, kicked, spat on and had objects thrown at them by protesters.
“It is intolerable that those whose job it is to enforce the law and keep people safe – in this case arresting individuals committing offences under the Terrorism Act – should be subject to this level of abuse.”
Image: Pic: PA
The force added some protesters had been both physically and verbally abusive in a “coordinated effort to prevent officers carrying out their duties”, and that more than 25 of the arrests were made for assault.
A spokesperson for Defend Our Juries claimed the rally had been “the picture of peaceful protest” and that the Met Police’s statement about its officers being abused was an “astonishing claim”.
“I’ve been here all day and I haven’t seen any violence or aggression from anyone,” they said. “I’ve only seen aggression and violence from the police.”
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It comes as the number of those arrested at the protest rose to more than 425 by around 9pm on Saturday, the Met said, but more arrests were expected.
Officers were seen drawing their batons while demonstrators took action in support of the proscribed terror organisation.
One man was seen with blood streaming down his face behind a barrier after being arrested, while the crowd was heard chanting “shame on you” and “you’re supporting genocide”.
Tense scenes on the western side of Parliament Square saw several protesters fall over in a crush while water was thrown at officers.
Image: Pic: PA
Deputy Assistant Commissioner Smart said the majority of protests, including the Palestine Coalition march, attended by around 20,000 people, “passed with very few arrests”.
But “this was not the case at the protest organised by Defend Our Juries in support of the proscribed terrorist organisation Palestine Action”.
“The tactics deployed by supporters of Palestine Action in their attempt to overwhelm the justice system, as well as the level of violence seen in the crowd, required significant resource which took officers out of neighbourhoods to the detriment of the Londoners who rely on them,” she said.
Sky News’ Laura Bundock was at the protest.
She said: “There are hundreds of people here holding their placards proclaiming support for Palestine Action, they know that in itself is a criminal offence and so they are sat around, lying around, waiting to be arrested but with so many people here, it’s taking a long time.”
She added: “Protesters are now appealing to the new home secretary, they don’t see this activism as terrorism and vow they will never back down.”
Image: A protester is carried away by police in Parliament Square. Pic: PA
First arrest after just 12 minutes
The Met announced the first arrests of the day on X just 12 minutes after the protest’s official start time.
The protest’s organiser, Defend Our Juries, said it estimated 1,500 had gathered for the rally, where many of them held signs saying: “I oppose genocide. I support Palestine Action.”
In an update early on Saturday evening, the Met said: “Any assaults against officers will not be tolerated and arrests have already been made. We will identify all those responsible and prosecute to the full extent of the law.”
It had warned before the protest that “expressing support for a proscribed organisation is a criminal offence under the Terrorism Act”.
“Where our officers see offences, we will make arrests,” it said.
Image: Pic: PA
Palestine Action has been banned as a terror group since 5 July after MPs voted overwhelmingly in favour of the move proposed by then-home secretary Yvette Cooper, making it illegal to express support for the group.
Image: Police and demonstrators in Westminster. Pic: PA
The ban on the group came shortly after two Voyager aircraft suffered around £7m worth of damage at RAF Brize Norton in Oxfordshire on 20 June.
The Home Office is set to appeal against the High Court ruling allowing Palestine Action’s co-founder, Huda Ammori, to proceed with a legal challenge against the government over the group’s ban.