AI failure could trigger the next financial crisis, warns Elizabeth Warren

Senator Elizabeth Warren warns of parallels between the AI industry and the 2008 recession, citing massive spending and borrowing practices by AI companies. She believes this creates a tinderbox, requiring regulatory oversight to prevent destabilizing losses in the financial sector. Warren proposes separating AI companies from other financial sources, comparing it to cutting a rope that ties their survival to multiple places, and wants a new digital regulator to enforce antitrust, privacy, and consumer protection.