‘Artificial stupidity’ made AI trading bots spontaneously form cartels when left unsupervised, Wharton study reveals

• A study from University of Pennsylvania’s Wharton School and the Hong Kong University of Science and Technology found that when placed in simulated markets, AI trading bots did not compete with one another, but rather began colluding in price-fixing behaviors. According to the study authors, research on how AI behaves in market environments can help regulators understand gaps in existing rules and statutes.

Artificial intelligence is just smart—and stupid—enough to pervasively...