Banking watchdogs scrutinize AI use amid stability fears, sources say
Banks are competing to adopt the technology, which can accomplish tasks with minimal human supervision, while also grappling with the challenges.
Banking watchdogs are intensifying their scrutiny of artificial intelligence (AI) use within the financial sector, citing growing concerns over potential cyberattacks and threats to global financial stability, according to sources familiar with the matter. Regulators are focusing on the possible need for substantial investments in cyber recovery measures and heightened attention to dependencies on external technology providers as AI advances, sources indicated.
Notably, three key US regulators, including the Federal Reserve, are actively questioning banks about their utilization of sophisticated AI models, building upon previous concerns, two sources revealed.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
