Bank of England Warns Agentic AI in Finance May Need Regulatory Overhaul
Regulatory Concerns Over Autonomous AI in the Financial Sector
Bank of England Highlights Need for Enhanced Oversight
LONDON, June 30 (Reuters) - More sophisticated regulatory frameworks may be needed to monitor and contain the risks AI poses to the financial system, one of the Bank of England's deputy governors said on Tuesday.
Speech at the European Central Bank Forum
Speaking at the European Central Bank Forum on central banking in Portugal, Sarah Breeden, deputy governor for financial stability, said the rapid rise in capabilities of AI agents that can act autonomously had exposed potential gaps.
Challenges of Autonomous Agents
"Our frameworks were not built to contemplate autonomous agents, and relying on a human in the loop for all agent actions is unlikely to be realistic. More sophisticated governance and accountability frameworks may be needed," Breeden said.
Global Warnings and Industry Impact
Risks Identified by Regulators
Regulators and global standard-setting bodies have repeatedly warned about the risks posed by the rollout of AI across the financial sector since Anthropic released Mythos that could pose significant cybersecurity challenges to the banking industry, analysts say.
Financial Stability Board's Recommendations
The Financial Stability Board earlier in June called for tighter safeguards to guard against the risks of AI agents, which, it said, posed a distinct challenge to human oversight.
Reporting Credits
(Reporting by Phoebe Seers; Editing by Sharon Singleton and Barbara Lewis)
