Why Major Banks Are Reining in Agentic AI
Verifying AI agents' identities may separate the rogues from the reliable. The post Why Major Banks Are Reining in Agentic AI appeared first on Global Finance Magazine .
Recent incidents of rogue artificial intelligence agents accessing customer bank accounts without authorization have prompted major banks such as JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Morgan Stanley & Co. to either limit or block third-party AI agents' access to their systems. The challenge lies in verifying digital credentials to determine if an AI agent's actions are authorized or unauthorized by the customer.
Andrew Shikiar, CEO of the authentication standards organization FIDO Alliance, emphasized the difficulty in addressing these issues, stating that it is even more challenging with agents compared to humans. While digital identities have been in use for several years, their implementation is fragmented, with Sweden and Norway using BankIDs and the European Union working on an EU Digital Identity Wallet.
In the Asia-Pacific region, Singapore has Singpass, and the U.S. relies on state-level initiatives. However, the FIDO Alliance is collaborating with international organizations to develop a trusted and interoperable identity ecosystem for digital credentials. Until AI agent management keeps pace with technological advancements, banks are exercising caution and temporarily restricting AI agent access to client accounts.
Written by urgent.news from Global Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
