The new face of the financial threat - Les Echos

To be read in The Echoes : “The new face of the financial threat”

Financial markets have entered a new era: that of algorithms and artificial intelligence. In an op-ed published in The Echoes, André Lévy-Lang, Chairman of the Supervisory Board of Echoes and president of the Louis Bachelier Institute, and Éric Campos, administrator of the Europlace Finance Institute, warn of a worrying reality: more than 65% of global stock market transactions are now carried out by algorithms, while The United States and China account for 70% of global investments in AI.

A technological shift with major geopolitical consequences : AI and algorithms are becoming economic weapons capable of manipulating markets and destabilizing our economies. These new threats come on top of already well-established power strategies: use of the dollar as a geopolitical weapon, financial deregulation in the United States, promotion of cryptocurrencies by the highest political circles...

Faced with these risks, France cannot remain a spectator. The authors call for rethinking our national defense doctrine, fully integrating the financial security in the same way as our strategic infrastructures.

They propose the creation of a strategic cluster “Finance, AI and National Defence”, which would allow:

• To strengthen the financial sector resilience,
• To integrate the Algorithmic risks in banking stress tests,
• To pool the research in applied mathematics and artificial intelligence,
• To set up a real-time observatory of algorithmic attacks.
  

A clear challenge: to preserve our decision-making autonomy in a world shaped by algorithms.‍

An essential article to read in The Echoes : https://www.lesechos.fr/idees-debats/cercle/le-nouveau-visage-de-la-menace-financiere-2175939