Understanding the Root Causes of the Stock Market Flash Crash

In 2010, a flash crash occurred in the US stock market, causing significant volatility and financial losses. This article dives into the events leading up to this incident, focusing on the factors contributing to its occurrence and the subsequent measures taken to prevent similar occurrences in the future. Emphasis is placed on responsible AI governance, safe and secure AI practices, and the role of trustworthy AI models within financial markets.

Matched TAIM controls

Suggested mapping from embedding similarity (not a formal assessment). Browse all TAIM controls

GOVERN 6.2 — similarity 0.498, rank 1. TAIM detail and related incidents →
MAP 3.2 — similarity 0.489, rank 2. TAIM detail and related incidents →
MANAGE 4.3 — similarity 0.484, rank 3. TAIM detail and related incidents →

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/28

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.