The International Monetary Fund (IMF) is urging central banks to closely examine how artificial intelligence (AI) may affect financial stability. “Future sudden market crashes may be less the result of programming errors, and more often because countless AI systems react to the same information at the same time”, warns IMF economist Tobias Adrian in a new report.
Several central banks in Europe and the United States are already using AI extensively. Still, Adrian stresses that central banks worldwide must respond to this shift. He says policy needs urgent adjustment, including changes to bank stress tests and tighter oversight of how financial institutions deploy AI. “Artificial intelligence is fundamentally changing how financial institutions price risks, extend credit, and respond to crises”.
Adrian also highlights the need for regulators to stay alert to cyber risks. Earlier this year, De Nederlandsche Bank (DNB) warned about potential AI-driven cyberattacks. DNB President Olaf Sleijpen called new AI models like Mythos a “game changer.” Advanced AI systems can carry out attacks independently and quickly identify security vulnerabilities. The financial sector must strengthen its defences in case such technology is misused.
@anp | NEWSBRAINPORT
