What's new
Overview
This deep dive examines the latest developments in artificial intelligence, including emerging adoption patterns, key risk watch points, evolving policy and supervisory guidance, and research on the economic impact of AI.
What's new
U.S. House Committee on Financial Services advances six bills including a proposal to replace the Federal Reserve dual mandate with price stability only
The U.S. House Committee on Financial Services has reported six bills to the House of Representatives, including the Price Stability Act of 2025, which would replace the Federal Reserve’s dual mandate with a single mandate focused on price stability. The other bills would enhance protections against fraud affecting retirees, require joint federal assessment of artificial intelligence risks in financial crime, establish AI innovation labs and regulatory sandboxes, and direct regulators to upgrade supervisory technology and fraud-fighting tools, including for community banks and credit unions.
U.S. House Financial Services Committee marks up bills on AI safeguards fraud tools and Federal Reserve price stability
The U.S. House Financial Services Committee released Chairman French Hill’s remarks on a legislative package to expand the federal response to AI-enabled financial fraud, promote regulatory sandboxes for financial technology, strengthen anti-scam enforcement, and assess regulators’ technology gaps. The bills, including the AI Plan Act, Unleashing AI Innovation in Financial Services Act, Bank Fraud Technology Advancement Act, GUARD Act, FUTURES Act, and Price Stability Act of 2025, are framed as part of the committee’s agenda on financial innovation, consumer protection, and refocusing the Federal Reserve.
Bank of Canada says Canadian business AI adoption has risen to around 12% and limited productivity gains are in projections
The Bank of Canada’s External Deputy Governor Michelle Alexopoulos said the Bank views artificial intelligence as a potential driver of structural change in productivity, growth, employment, inflation and financial stability, and is beginning to incorporate AI-related productivity gains into its projections of potential output. She highlighted rapid but uneven AI adoption in Canada, with most firms using AI to automate routine tasks and support analysis rather than replace workers, and noted that the Bank uses AI and machine learning for forecasting, text and sentiment analysis, and financial stability monitoring while keeping monetary policy decisions under human control.
Uzbekistan Ministry of Economy and Finance completes four priority digital projects and launches AI pilots
The Ministry of Economy and Finance of Uzbekistan reported progress on digitisation and artificial intelligence, including four priority digital projects, an AI working group, AI-based support tools, and a business process audit and redesign initiative. The projects cover subsidy administration, higher education workforce planning, supervisory board governance and open budget processes, while AI pilots include an assistant on the Open Budget portal, a G'azna chatbot module in the UzASBO suite and the IM AI analytical system for regional macroeconomic and enterprise-level analysis.
Brunei Darussalam Ministry of Finance and Economy opens two day accounting forum and urges greater use of data and AI
The Revenue Division of the Brunei Darussalam Ministry of Finance and Economy and the Brunei Darussalam Institute of Certified Public Accountants opened a two-day Accounting Forum and Exhibition on “Redefining the Profession Shaping the Future of Accounting in Brunei Darussalam.” In his keynote, the Minister at the Prime Minister’s Office and Minister of Finance and Economy II stressed the profession’s role in financial integrity, transparency, accountability and sustainable growth, and urged greater use of data and artificial intelligence in decision-making, risk mitigation and forecasting.
Japan Financial Services Agency publishes minister remarks confirming foreign exchange coordination with the United States and a planned finance sector AI cyber working group
The Japan Financial Services Agency reported that Finance Minister Katayama reaffirmed close coordination with the United States on financial market developments, including foreign exchange, in line with the Japan-US finance ministers' joint statement. He announced a new public-private working group involving the financial industry, IT firms, the government and the Bank of Japan to strengthen financial sector cybersecurity against advanced AI-related threats and develop a shared view of associated risks and responses.
State Bank of Vietnam outlines responsible AI approach and calls for ecosystem-wide safeguards for digital financial trust
The State Bank of Vietnam’s Deputy Governor Pham Tien Dung outlined the central bank’s approach to artificial intelligence in banking, stressing that digital innovation must be matched by safety, risk control and customer protection, and that AI must not dilute human and institutional accountability for financial decisions. He highlighted the rapid expansion of digital banking and payments, the State Bank’s efforts to strengthen legal and security frameworks, biometric authentication and data cleansing with the Ministry of Public Security, and the requirement for credit institutions to upgrade technology, information security and risk management. Dung also underscored AI’s benefits in credit scoring, fraud detection and anti-money laundering, and the associated risks, calling for shared risk alerts, coordinated handling of suspicious accounts and strict compliance with personal data protection and cybersecurity rules.
South African Reserve Bank outlines AI supervision agenda with joint discussion paper expected in early second half of 2026
The South African Reserve Bank’s Prudential Authority outlined a three-part AI supervisory agenda for the financial sector focused on improving information, building skills and calibrating regulation. A joint Prudential Authority–Financial Sector Conduct Authority discussion paper on AI regulation is expected in early H2 2026, with regulatory arrangements likely by early 2027. The speech highlighted AI as a growing prudential and conduct issue, citing vulnerabilities such as third-party dependencies, cyber and model risks, and prioritising AI taxonomies, governance, explainability and disclosure. It noted gaps in skills, fairness testing and board oversight. In parallel, the Intergovernmental Fintech Working Group is developing an AI workstream with sandbox testing for complex use cases including algorithmic credit scoring, index insurance and tokenised assets.
Australian Securities & Investments Commission warns licensees and market participants to urgently strengthen cyber resilience as frontier AI raises cyber risk
The Australian Securities & Investments Commission has issued an open letter urging all licensees and market participants to strengthen cyber resilience as frontier AI increases the speed, scale and sophistication of cyber threats. ASIC reiterates that cyber resilience is a core licensing obligation requiring board and executive leadership, references its recent court outcome against FIIG Securities Limited, and sets expectations for effective, proportionate cyber risk controls and governance. The letter must be tabled at boards and risk governance committees and directs firms to Australian Government guidance as ASIC coordinates with other regulators to promote consistent expectations.
Office of the Comptroller of the Currency flags commercial real estate refinancing cyber and sanctions risks in Spring 2026 risk outlook
The Office of the Comptroller of the Currency’s Spring 2026 Semiannual Risk Perspective reports that the federal banking system entered 2026 with improved earnings, strong balance sheets, high capital and liquidity, and manageable credit risk. The report highlights credit and refinancing risks in segments of commercial real estate and private credit, modest increases in past-due consumer loans, and elevated operational and compliance risks from sophisticated cyber threats, fraud, advanced artificial intelligence tools, and heightened sanctions and anti-money laundering pressures.
International Monetary Fund analysis warns AI-enabled cyberattacks could trigger systemic financial stress
The International Monetary Fund warns that advances in artificial intelligence are increasing the scale and speed of cyberattacks on the financial system and could turn extreme cyber incidents into macro-financial shocks. It urges supervisors to treat cybersecurity as a core financial stability issue by strengthening resilience standards, oversight of systemic transmission channels, and public-private coordination, while noting that AI can also enhance cyber defenses if supported by appropriate investment, governance, oversight and cooperation.
Central Bank of the Republic of Uzbekistan rolls out nationwide AI training for regional banking executives
The Central Bank of the Republic of Uzbekistan and the Ministry of Digital Technologies have launched an artificial intelligence training programme for executive staff in the regional banking system, following a presidential instruction to expand digital technologies in banking. A two-day pilot course for Tashkent region bank branch executives covered AI applications in management, risk assessment, process automation, customer service, and related risks, compliance and governance, with similar courses to be rolled out across all regions.
European Central Bank working paper finds Q learning can amplify fund redemption fragility while large language models weaken coordination
The European Central Bank published a working paper analysing how different artificial intelligence architectures could affect financial stability via investor redemption behaviour in mutual fund “run” scenarios. The study finds that Q-learning investors coordinate easily but exhibit a systematic redemption bias under default risk, amplifying fragility, while large language model investors reason in expected-value terms and are less affected by default risk but display weaker coordination and lower predictability.
Securities & Exchange Board of India issues advisory on AI led vulnerability detection risks and creates cyber-suraksha.ai task force
The Securities & Exchange Board of India has warned securities market intermediaries about cyber risks from advanced AI tools and created a cyber-suraksha.ai task force for a coordinated response. The task force will assess AI-driven cybersecurity risks, develop a uniform mitigation strategy, facilitate threat intelligence sharing, and review third-party providers. SEBI’s advisory sets expectations for immediate and virtual patching, enhanced vulnerability assessments and SOC monitoring, stronger vendor and API controls, and longer-term plans for AI-based detection and mitigation.
Office of the Superintendent of Financial Institutions, Canadian Public Accountability Board and Canadian Securities Administrators highlight emerging risks to audit quality
Canadian financial and audit regulators highlighted technology, governance, fraud and disclosure risks affecting audit quality. They called for stronger oversight, risk-focused fraud defenses and more robust scrutiny of financial statement disclosures involving estimates, judgments and uncertainty.
French Financial Markets Authority research finds AI use in investing remains limited and mainly supports other information sources
The French Financial Markets Authority has published a research note on artificial intelligence in investment decisions by French adults, finding that AI remains a minority tool used mainly for information rather than as a standalone decision maker. Eleven percent of adults use AI before investing, with higher use among those under 35, and most users combine AI with personal research or professional advice. Respondents see potential for more tailored, lower-cost advice but also highlight risks of errors and reduced transparency, and the authority will monitor these trends.
U.S. Department of the Treasury hosts Liberty University summit on artificial intelligence energy and emerging technologies
The U.S. Department of the Treasury hosted a summit with Liberty University on artificial intelligence, energy and emerging technologies, focusing on their impact on the economy and public sector delivery, without announcing new policy measures. Four panels addressed frontier AI, energy, workforce productivity and financial literacy, with participation from senior U.S. government officials and industry representatives.
Federal Reserve Board's Bowman outlines AI supervision after excluding generative and agentic AI from model risk guidance
The Federal Reserve Board published remarks by Vice Chair for Supervision Michelle Bowman outlining a supervisory approach to banks’ use of artificial intelligence that focuses on material financial risk while avoiding unnecessary impediments to innovation. She noted that the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation have amended model risk management guidance to exclude generative and agentic AI, with these tools instead covered by broader governance and risk-management expectations. Bowman also said the Financial Stability Board’s Standing Committee on Supervisory and Regulatory Cooperation is preparing a consultation report on sound practices for AI adoption, including potential needs for greater international consistency in expectations for cybersecurity and critical infrastructure.
European Insurance and Occupational Pensions Authority flags geopolitical tensions and market risks in April 2026 IORP dashboard
The European Insurance and Occupational Pensions Authority has published its April 2026 risk dashboard for institutions for occupational retirement provision, highlighting elevated geopolitical tensions, higher inflation projections and market risks as key concerns. While bond spreads have widened and equity and corporate market volatility has increased, liquidity and funding risks are contained and the financial position of defined benefit IORPs has strengthened. The dashboard covers defined contribution and defined benefit schemes in the European Economic Area, based on Q4 2025 regulatory data from 625 IORPs and market data up to end-March 2026.
Australian Prudential Regulation Authority calls for step change in AI risk management after review finds governance and cyber controls lagging adoption
The Australian Prudential Regulation Authority has issued a letter to regulated entities outlining findings from a 2025 supervisory review of artificial intelligence use, warning that governance, risk management, assurance and operational resilience are not keeping pace with rapidly expanding deployments. The review highlights board-level technical literacy gaps, lagging information security controls, fragmented assurance, concentration risks in AI suppliers and weak contingency planning, and sets expectations for stronger oversight, cyber hygiene, human involvement in high-risk decisions and integrated assurance. APRA is finalising a supervisory plan and signalled it will escalate enforcement where entities fail to manage AI risks proportionately.
South Korea Financial Services Commission outlines targeted fintech support upgrade and stablecoin and data reform plans
South Korea’s Financial Services Commission outlined plans to overhaul its fintech support framework to focus more on artificial intelligence, data, regional enterprises and young entrepreneurs, alongside regulatory changes to establish a legal basis for stablecoins and ease data-use rules. The initiative will introduce performance-based incentives, strengthen AI and overseas expansion programs, create regional public-private governance networks, and establish an integrated one-stop fintech support information platform.
Canada's Office of the Superintendent of Financial Institutions outlines priorities on credit non-bank and liquidity risks and signals targeted capital and liquidity calibration
The Office of the Superintendent of Financial Institutions is sharpening its supervisory and policy agenda around risks in its Annual Risk Outlook, including real estate secured lending, non-bank financial institutions, and liquidity and funding risks, supported by a new Credit Risk Management Guideline consultation, liquidity framework refinements, and earlier supervisory engagement with boards and senior management. OSFI has streamlined its policy suite, signalled willingness to recalibrate capital and liquidity requirements, and continues to benchmark Canadian capital rules internationally. On climate, tokenization, stablecoins, and artificial intelligence, OSFI is pursuing a measured, prudentially focused approach that emphasises governance, accountability, and keeping activity within the regulated perimeter.
Japan Financial Services Agency establishes finance sector cybersecurity working group to address AI driven threats
The Japan Financial Services Agency has established a public-private working group on financial sector cybersecurity, described as a Japanese version of “Project Glasswing”, to coordinate responses to AI-driven cyber risks. The initiative aims to accelerate information sharing on vulnerabilities, shorten the time from identification to patch application, and strengthen preparedness for incidents in the highly interconnected, real-time financial system, with potential expansion to include IT firms, online finance participants, and engagement with international counterparts through G7 and G20 forums.
National Bank of Moldova deputy governor sets out AI resilience and accountability risks at the IMF New Economy Forum
The National Bank of Moldova reported that Deputy Governor Mihnea Constantinescu spoke at the IMF’s “New Economy Forum: AI and the Resilience Gap”, warning that uneven AI adoption and concentration in data infrastructure and frontier models can create systemic dependencies and widen resilience gaps between countries. He stressed that effective AI integration depends on public and private sector digitalisation and highlighted governance risks in hybrid human-algorithm decision chains, where autonomous AI agents may undermine accountability.
International Monetary Fund publishes note on how agentic AI could change payment authorization and settlement
The International Monetary Fund has published a note on how “agentic” artificial intelligence, which can act autonomously on users’ behalf, could reshape payment systems by shifting transactions to agent-mediated decisions. Using a three-layer framework of intent, authorization, and settlement, it assesses potential benefits and risks for authorization, liquidity, settlement, compliance, and resilience, highlighting tensions between probabilistic AI behaviour and deterministic payment infrastructure requirements, and risks around traceability, opacity, systemic effects, cybersecurity, and legal uncertainty.