Finance
Global financial watchdogs to ramp up monitoring of AI
Published by Global Banking and Finance Review
Posted on October 10, 2025
1 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 10, 2025
1 min readLast updated: January 21, 2026
Financial regulators plan to enhance AI risk monitoring due to concerns over uniform AI models and vulnerabilities in the financial sector.
LONDON (Reuters) -Global financial regulators have laid out plans for closer monitoring of the risks as banks and other parts of the financial industry ramp up the use of artificial intelligence.
Concerns raised by authorities include that too many institutions end up using the same AI models and specialised hardware, which could lead to herd-like behaviour.
"This heavy reliance can create vulnerabilities if there are few alternatives available," the report by the Financial Stability Board, the G20's risk watchdog, said.
A separate study published by central bank umbrella group, the Bank for International Settlements, said there was an "urgent need" for central banks, financial regulators and supervisory authorities to "raise their game" in relation to AI.
"There is a need to upgrade their capabilities both as informed observers of the effects of technological advancements and as users of the technology itself," the BIS said.
(Reporting by Marc JonesEditing by Mark Potter)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. AI can perform tasks such as problem-solving, understanding language, and recognizing patterns.
Risk management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. This includes financial, operational, and strategic risks.
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