Increased digitization and monopolization could make capital markets less shock-resistant

AI is accelerating concentration in capital markets — and regulators are worried: AI is starting to make inroads into capital markets, with computer-driven funds now constituting a fifth of US equity assets under management. But regulators fear that the machine-learning models able to process more data will result in potentially destabilizing market concentration. New firms will find it increasingly difficult to enter the markets, ultimately making them more vulnerable to unexpected shocks as they become ever more dependent on a limited number of entities and data-based relationships. The Financial Times has more.