Banking authorities are accelerating efforts to manage rising AI risks, according to six people familiar with the situation, with some citing the possibility of bank cyberattacks or rogue agents that could damage global financial stability.
The regulatory review reflects a growing realisation that breakthroughs in frontier AI may require costly cyber recovery, greater reliance on external technology suppliers, and, in some jurisdictions, clearer regulatory guidance, according to sources.
Three top US regulators, including the Federal Reserve, are questioning banks about their use of advanced artificial intelligence models, according to two sources, adding to previous scrutiny. Three of the participants questioned whether they use Chinese-developed technology, AI agents in cyber defence, and whether they can control more autonomous systems.
Supervisors in Europe, including the Bank of England and the European Central Bank, are pressuring banks to improve recovery plans, concerned that rapid advances in artificial intelligence may cause serious harm and disruption in financial markets sooner than previously thought, according to three people familiar with their thinking. A senior executive at a major European bank expressed concern about the possibility for significant harm to banking and financial markets within the next six months.
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