The Financial Stability Board published the article FSB assesses the financial stability implications of artificial intelligence, announcing the report The Financial Stability Implications of Artificial Intelligence. The report outlines recent developments in the adoption of artificial intelligence (AI) in finance and their potential implications for financial stability. From the article:

The report notes that AI offers benefits from improved operational efficiency, regulatory compliance, personalised financial products and advanced data analytics. However, AI may also amplify certain financial sector vulnerabilities and thereby pose risks to financial stability.

Several AI-related vulnerabilities stand out for their potential to increase systemic risk. These include: (i) third-party dependencies and service provider concentration; (ii) market correlations; (iii) cyber risks; and (iv) model risk, data quality and governance. In addition, GenAI could increase financial fraud and disinformation in financial markets. Misaligned AI systems that are not calibrated to operate within legal, regulatory, and ethical boundaries can also engage in behaviour that harms financial stability. And from a longer-term perspective, AI uptake could drive changes in market structure, macroeconomic conditions and energy use that may have implications for financial markets and institutions.