Special Topic: 2026 Bund Annual Conference — Technology, Geopolitics and the Global Economy. From October 20-22, along the banks of Shanghai's Huangpu River, the 2026 Sustainable Global Leaders Conference returns once again. Nobel Prize and Turing Award winners will take the stage to discuss the future and trends of technology, and the internet-famous professors who "rescue" people from anxiety and the era of involution — Macfarlane and Xiang Biao — will hold a live dialogue!
Limited seats available, first come first served. Let us join together for the sustainable appointment! [Click to register] On October 20, Financial Frontline News: The 2026 Bund Annual Conference on "Technology, Geopolitics and the Global Economy" was held from October 19-22, 2026 in Huangpu District, Shanghai. LorenzO BINI SMAGHI, Chairman of the European 50 Group, attended the conference and participated in a roundtable discussion.
"If many institutions rely on similar models and data, could AI cause market stress to occur faster and more synchronously? If so, what should central banks do now?" In response, LorenzO BINI SMAGHI stated that our discussion of AI is still at an early stage, and we tend to think about AI using so-called partial equilibrium rather than general equilibrium methods. We have AI, and before us are humans, and humans choose to trust or not to trust. But the world we are about to enter is not like this, because humans will have machines, and will also have agents. So we must gain the trust of agents.
LorenzO BINI SMAGHI believes that for regulators and financial institutions, the challenge is how to educate agents, what information should be input into agents, and how to make them aware that tail risks may exist. "For example, who still remembers the last financial crisis? In reality, this is indeed the case. Which trader in today's major trading floors is old enough to remember the last crisis? Perhaps agents will have stronger memory, but how do we incentivize them to remember data from 15 or 20 years ago, or, if they can make big money in the market right now, why should past data be more important to them? These are enormous challenges," said LorenzO BINI SMAGHI.
When asked about the single most important thing policymakers should do in financial AI governance over the next one to two years, LorenzO BINI SMAGHI stated that policymakers should cooperate with institutions in the financial sector rather than confront them, because this is a learning process, and they should not be afraid to share experiences and learn from each other.
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