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
United Arab Emirates Cabinet adopts agentic AI framework targeting 50% of government services within two years and approves new digital records and data sharing policies
The UAE Cabinet approved a new federal framework to deploy agentic artificial intelligence across government operations, targeting the transition of 50% of government sectors, services and operations to autonomous AI models within two years, supported by unified standards and data policies. Implementation will be overseen by H.H. Sheikh Mansour bin Zayed Al Nahyan and a dedicated taskforce, with ministries assessed on AI adoption and complementary measures including a federal Code for Government Services, a Zero Bureaucracy reference model, and new policies on digital records and data sharing.
U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Elizabeth Warren warns of a debt-fuelled AI bubble and urges pre-emptive structural reforms
The U.S. Senate Committee on Banking, Housing and Urban Affairs published remarks by Ranking Member Senator Elizabeth Warren warning that a debt-fuelled boom in artificial intelligence investment could pose systemic financial stability risks. She highlighted heavy reliance on private credit and complex debt structures, growing interconnectedness and opacity, and questioned whether AI revenues can scale sufficiently to service projected borrowing. Warren reiterated calls for structural financial reforms, a new digital regulator, and stronger accountability measures to mitigate potential AI-related financial shocks and avoid future bailouts.
Luxembourg's Ministry of Finance advisory board publishes first recommendations on integrating AI in finance
The Advisory Board on AI in Finance of Luxembourg’s Ministry of Finance has issued its first recommendations on integrating artificial intelligence in the financial sector, reflecting AI’s growing impact on financial services and competitiveness. The forward-looking guidance outlines strategic perspectives on AI-related opportunities and risks to support Luxembourg’s position as an international financial centre.
Dubai International Financial Centre announces plan to become the world’s first AI-Native financial centre
The Dubai International Financial Centre plans to become the world’s first AI-native financial centre, embedding artificial intelligence across its legal and regulatory frameworks, business environment, talent development, infrastructure and urban design. Building on its five-year AI strategy and AI-specific data governance under the DIFC Data Protection Law, the programme will establish ethics and governance frameworks for AI agents and robotics, provide firms with advanced AI tools, and develop an AI Campus, with DIFC estimating USD 3.5bn in economic benefits and 25,000 new jobs.
National Bank of Moldova governor outlines internal AI governance and planned rules for AI cloud and eKYC
National Bank of Moldova Governor Anca Dragu outlined the central bank’s gradual approach to artificial intelligence adoption and oversight, highlighting current financial sector uses in credit risk assessment, liquidity management, forecasting and fraud detection. She detailed the bank’s internal AI governance framework, AI-based assistant, automation and SupTech data capabilities, and noted forthcoming regulations on AI use, cloud services and electronic customer identification, underpinned by a “human-in-the-loop” principle to mitigate cybersecurity, data protection and third-party risks.
Bank for International Settlements publishes dataset on 1,246 AI-producing firms and finds the United States and China are the largest hubs
The Bank for International Settlements published a working paper and cross-country dataset mapping 1,246 AI-producing firms across 32 economies into five AI supply chain layers, highlighting global concentration, specialisation and investment patterns relevant to AI industrial and sovereign strategies. Firm activity is heavily concentrated in the United States and China, with significant economic footprint in Chinese Taipei and Korea, and shows strong home bias in investment and a high share of deals targeting AI applications. The publicly available dataset is based on PitchBook data, uses large language model-assisted classification with manual verification, and covers firms with valuations above USD 500 million.
UK Parliament Treasury Committee publishes regulators’ AI responses as Bank of England plans AI-agent trading tests
The UK Parliament Treasury Committee has published responses from the Bank of England, HM Treasury and the Financial Conduct Authority to its report on artificial intelligence in financial services, including confirmation that the Bank plans to test AI agents in financial trading markets and assess correlated “herding” risks. HM Treasury did not commit to bringing major AI and cloud providers into the Critical Third Parties Regime before the end of 2026. The Financial Conduct Authority plans to share AI best practice examples with firms, and the Committee will continue to monitor progress and potential disruption from outages at major providers.
Spanish Securities Commission publishes study warning that unsupervised large language models can produce faulty stock investment recommendations
The Spanish Securities Commission (CNMV) has published a research paper finding that advanced large language models used for stock investment predictions pose significant operational risks and potential investor losses without human oversight. Comparing outputs from ChatGPT, Gemini, DeepSeek and Perplexity, the CNMV highlights recurring reasoning failures, especially with simple, unstructured queries, and concludes that robust governance, systematic human validation and grounding models in official, regulated data are essential to improve reliability and reduce errors.
Dutch Authority for the Financial Markets publishes report on AI in capital markets and stresses human oversight and clear accountability
The Dutch Authority for the Financial Markets has published a sector report on how artificial intelligence is transforming capital markets trading, highlighting efficiency gains alongside heightened integrity and vulnerability risks. It flags risks from self-learning trading systems, information-based manipulation and multi-agent technology, and stresses the need for clear human responsibility, robust controls and oversight. The authority will strengthen its supervision and expertise, translate emerging risks into supervisory measures, consider further regulatory changes or interpretations, and continue engagement with market participants and other supervisors.
Central Bank of Cuba reviews artificial intelligence strengths and risks and sets out priorities for responsible use
The Central Bank of Cuba published an international overview on how artificial intelligence is reshaping sectors including finance, highlighting both its benefits and ethical, social and economic risks. The article outlines key applications in healthcare, finance and education, and recommends explainable and auditable models, legal and ethical frameworks, workforce reskilling, equitable access and stronger safeguards against cyberattacks and data manipulation.
State Bank of Vietnam supports an ASEAN common baseline framework for AI governance and stronger regional cooperation to counter digital fraud
The State Bank of Vietnam reported on Deputy Governor Nguyen Ngoc Canh’s participation in an ASEAN dialogue on a common baseline framework for artificial intelligence governance in finance and an ecosystem-based approach to rising fraud and scams. Canh backed a voluntary, risk-based, purpose-specific regional framework prioritizing operational guidance for banking use cases such as fraud prevention, anti-money laundering, countering the financing of terrorism, customer service and decision support. Participants also urged stronger coordination and information sharing among banks, regulators and other stakeholders to combat increasingly digital, cross-border fraud.
Sweden's Financial Supervisory Authority selects reference group for Innovation Compass project on AI-based ESG data reliability
Sweden's Financial Supervisory Authority (Finansinspektionen, FI) has appointed industry participants to a reference group for its first Innovation Compass guidance project on the reliability of automated and AI-based methods for ESG data. Through workshops, the project will identify practical questions and challenges in using such data for external sustainability reporting and for assessing and managing sustainability risks, with participants including Climate Tracker Initiative, Metria AB, SEB, Handelsbanken, SBAB Bank, Norion Bank and Länsförsäkringar AB.
National Bank of Denmark analysis estimates AI could add 0.1–1.0 percentage points to Denmark’s annual total factor productivity growth
The National Bank of Denmark published an analysis concluding that artificial intelligence is likely to support higher productivity in the Danish economy, but with highly uncertain magnitude and timing, so no separate AI contribution is included in its latest three-year forecast. The analysis notes rapid AI adoption, with 42 per cent of Danish companies using at least one AI technology in 2025, and estimates that 39–61 per cent of work tasks are exposed to AI. It finds AI could raise annual total factor productivity growth by around 0.1–1.0 percentage points over ten years, compared with about 0.5 per cent over the past five years, and highlights potential second-round effects via investment, labour market reallocation, unit costs and energy demand from data centres.
Dutch Authority for the Financial Markets finds AI adoption rising in Dutch asset management while governance and ethics lag
The Dutch Authority for the Financial Markets has published research finding that artificial intelligence use in the Dutch asset management sector is increasing faster than firms’ policies and internal arrangements, with associated risks growing. Asset managers mainly use AI for analysis, price forecasting and trading strategies, but many lack budgets, AI-specific governance, policies on employee and generative AI use, and ethics frameworks. The authority urges firms to strengthen governance, including clear policies, data quality controls, supplier due diligence and explainable, controllable models.
State Bank of Vietnam flags AI-driven cyber risks and urges joint action to secure AI systems
The State Bank of Vietnam’s Deputy Governor Pham Tien Dung used a National Cybersecurity Association workshop in Hanoi to outline how artificial intelligence is reshaping banking operations and cyber risks, calling for closer coordination between authorities, businesses and experts. He highlighted AI applications in credit assessment, fraud detection, process automation and customer support, alongside emerging threats such as personalized scams, deepfake-enabled impersonation and adaptive malware, and referenced efforts to refine Vietnam’s cybersecurity and AI governance framework with a focus on safety, transparency and accountability.
Federal Reserve Board research reconciles AI adoption surveys showing 18% of US firms using AI by end-2025 and broad workforce exposure
The Federal Reserve Board published a research note comparing three major surveys on U.S. artificial intelligence adoption, finding that about 18% of firms reported AI use by end-2025, while around 41% of workers reported using work-related generative AI and 78% of the labor force is employed at AI-adopting firms. The note attributes differences in adoption rates mainly to survey design, including sampling, units of analysis, question framing, and respondent knowledge. Adoption increases with firm size and is notably high in professional services and finance.
China Banking and Insurance Regulatory Commission starts Jin Jian regtech programme and calls for orderly financial-sector AI pilot deployments
The China Banking and Insurance Regulatory Commission held an expanded Party committee study session on artificial intelligence to set priorities for AI use in financial services and supervision, positioning it as a strategic focus for technology finance and the sector’s digital transformation. Director Li Yunze called for building a financial service system aligned with full life-cycle financing needs of future industries, prudently piloting AI applications, establishing a secure AI governance framework, and launching the “Jin Jian Project” to strengthen supervisory technology and look-through supervision.
Union of Arab Securities Authorities reports AMERC annual meeting focus on IOSCO 2026 priorities and tackling online fraud
The Union of Arab Securities Authorities reported that the IOSCO Regional Committee for Africa and the Middle East held its 2026 annual meeting virtually, focusing on IOSCO’s 2026 work programme and regional activities. Participants reviewed regional market developments, capacity-building initiatives, and survey results on members’ priorities, and discussed measures to enhance market resilience, combat online fraud, strengthen investor protection, and address supervisory challenges including technology, artificial intelligence, and cross-border cooperation.
Croatian National Bank and European Investment Bank Group highlight low AI uptake and financing skills and policy barriers in Croatia
The Croatian National Bank reported on a joint conference with the European Investment Bank Group on building an “AI-ready” Croatian economy, where new EIB research showed that while 89% of Croatian firms are investing, only around one fifth systematically use generative artificial intelligence, below the European Union average in AI adoption. Speakers identified access to finance, skills shortages, fragmented data and regulatory uncertainty as key barriers, and highlighted financing, skills and policies as levers to accelerate AI use, while noting risks from overreliance on AI and labour market impacts.
European Central Bank research finds 38% of euro area firms are advanced AI adopters and users plan higher AI investment
The European Central Bank published analysis from its Survey on the Access to Finance of Enterprises for the fourth quarter of 2025, examining euro area firms’ artificial intelligence adoption and investment plans. The study finds uneven but substantial AI uptake, with advanced users more likely to anticipate higher turnover, fixed-asset investment, wages and employment, and planning a larger share of total investment in AI than non-users and early-stage adopters.
Monetary Authority of Singapore outlines insurer priorities with revised Notice 133 capital rules effective 31 March and planned guidance on AIR, third-party risk and AI
The Monetary Authority of Singapore outlined supervisory priorities for insurers around fair dealing and customer outcomes, risk-appropriate capital and risk management, operational resilience, and disciplined adoption of artificial intelligence. Key measures include classifying investment-linked policies as complex products, revising Notice 133 under the risk-based capital framework to adjust capital treatment for infrastructure, structured products and equities, and enhancing oversight of private asset exposures. MAS is also consulting on new Guidelines on Third Party Risk Management and Operational Risk Management and developing AI Risk Management Guidelines.
Federal Reserve Board research finds no evidence that higher AI adoption has reduced firms’ job postings
The Federal Reserve Board's FEDS Note finds no evidence that higher AI adoption levels correlate with reduced job postings, using data from September 2023 to November 2025. The analysis, combining Lightcast job postings and US Census Bureau data, shows industry-level effects are generally positive but not statistically significant, with firm-level results indicating precisely estimated null effects. The findings are framed as backward-looking and not causal, suggesting ongoing monitoring as AI adoption continues.
U.S. Financial Services Committee publishes oversight remarks urging regulators to keep pace with AI and digital-asset innovation
The U.S. Financial Services Committee released remarks and testimony from federal banking regulators on adapting supervisory frameworks to rapid innovation in AI and digital assets. Key discussions included the adequacy of current agency structures, the need for new supervisory technologies, and regulatory certainty across administrations. Criticism was directed at the Federal Reserve's Novel Activities Supervision Program, with calls for legislative changes in stablecoin and digital asset markets.
Bank for International Settlements' Financial Stability Institute reviews emerging supervisory approaches to generative AI data use in financial services
The Bank for International Settlements' Financial Stability Institute released a paper on data use and risks in financial institutions' AI applications, focusing on generative AI. It highlights challenges like fragmented legacy data and third-party dependencies, and suggests more tailored supervisory guidance on AI data governance, quality standards, and security. The paper also calls for enhanced collaboration between financial and data protection authorities to address cross-border issues.
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member Warren criticises Trump Administration deregulation in statement on FSOC meeting
Senator Elizabeth Warren warned of rising financial stability risks after a Financial Stability Oversight Council meeting, criticizing the Trump Administration's weakening of post-crisis oversight. She highlighted concerns over private credit deterioration, an oil price shock linked to the President's actions in Iran, and a potential debt bubble in the artificial intelligence sector. Warren argued that deregulation could lead to conditions necessitating taxpayer bailouts and broader economic harm.