The Financial Conduct Authority (FCA) has identified “inappropriate technology-led asset management decisions” as one of five issues in the investment management sector that could undermine stability. Writing in its annual “Sector Views” publication, the regulator said such decisions could result in “harmful side effects”. The proportion of assets invested through technology-led decision-making was small but growing, and “[t]he speed of machine reactions could have serious consequences,” it said. “If artificial intelligence using an algorithm were to make an inappropriate asset management decision, any resulting losses could be quickly compounded,” it added.