US and European bank regulators are stepping up scrutiny of AI risks, warning
that autonomous agents and AI-enabled cyberattacks could threaten global
financial stability, sources said. Regulators say advances in frontier AI may
force banks to make large investments in cyber-resilience, increase scrutiny of
third-party tech vendors, and lead some jurisdictions to issue formal guidance.
In the US, three major regulators including the Federal Reserve have queried
banks about their use of advanced AI models; in Europe the Bank of England and
European Central Bank are pressing banks to strengthen recovery plans.
Regulators warned the rapid pace of AI development could cause serious market
disruption sooner than previously expected.
