TREE NEWS update: People’s Bank of China Deputy Governor Lu Lei said new-generation AI tools such as large models and agents bring novel risks including algorithmic black boxes and model hallucinations, speaking at the China-ASEAN Financial Cooperation and Development Forum. He said AI can learn the underlying logic of human behavior while humans cannot penetrate its internal decision-making, an ‘asymmetric understanding’ that may pose deep challenges for the financial industry and underscores the importance of safety governance.
PBOC Deputy Governor Lu Lei Warns AI Brings Algorithmic Black Box, Model Hallucination Risks to Finance
AI take
A senior PBOC official framing AI risk as an epistemic asymmetry — machines that read human behavior while humans cannot read theirs — is a notably structural critique rather than a routine call for caution. It signals that Chinese regulators may treat model opacity and hallucination as financial stability concerns, not just consumer-protection issues, which matters for any firm deploying agents in lending, trading or advice. The open question is whether this framing hardens into supervisory expectations for model explainability and governance, and how that lands on cross-border AI deployment under the China-ASEAN cooperation banner.
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