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. Department of the Treasury releases an AI Lexicon and Financial Services AI Risk Management Framework
The U.S. Department of the Treasury released an Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework to guide AI use in the financial sector, supporting the President’s AI Action Plan. The Lexicon standardizes AI terminology, while the Framework adapts the National Institute of Standards and Technology’s AI Risk Management Framework for financial services. These resources are part of broader efforts by the Artificial Intelligence Executive Oversight Group to address AI-related issues like identity, fraud, and data practices.
International Monetary Fund Managing Director outlines AI’s potential 0.8 percentage point GDP lift and net job gains at India summit
IMF Managing Director Kristalina Georgieva, at the India AI Impact Summit, highlighted AI's potential to boost global GDP growth by up to 0.8 percentage points and create a net addition of 1.3 jobs for every AI-related hire. She emphasized the risks of job displacement and the importance of a human-centred AI approach. Georgieva also encouraged India to share its practical AI advancements with low-income and developing countries.
U.S. Department of the Treasury concludes AI cybersecurity initiative and will release six risk management resources for financial services
The U.S. Department of the Treasury concluded a public-private initiative to enhance cybersecurity and risk management for artificial intelligence in the financial sector. Led by the Artificial Intelligence Executive Oversight Group, the initiative will produce six resources focusing on governance, data practices, transparency, fraud, and digital identity, aimed at supporting secure AI use, particularly for small and mid-sized institutions.
Dutch Authority for the Financial Markets sets out how generative AI will shift mortgage advisers into an oversight role
The Dutch Authority for the Financial Markets released a speech by board member Jos Heuvelman on the impact of generative artificial intelligence on mortgage advisers and supervision. Heuvelman highlighted that AI will streamline the mortgage advice process, positioning advisers as orchestrators responsible for AI-generated judgments.
Bank for International Settlements publishes research on how AI preparedness shapes productivity gains in emerging market economies
BIS Bulletin No 121 examines AI's impact on productivity, growth, and labor markets in emerging economies. Advanced economies are better positioned for near-term gains, while emerging markets may see smaller benefits due to sectoral composition and uneven AI readiness. AI could boost productivity, but employment effects are uncertain, with potential negative impacts on low-skill jobs.
Central Bank of Russia sets 2026–2028 economic research agenda focused on AI and a monetary policy review
The Central Bank of Russia's 2026–2028 economic research agenda addresses challenges like AI's impact on the economy and financial decision-making. Key areas include monetary policy studies, conditions for reducing the inflation target, and marketplaces' influence on inflation. The agenda also emphasizes behavioural economics, fraud techniques, and retail investor risks to enhance consumer protection.
Bank of England publishes AI roundtable findings as firms back the PRA framework and flag barriers to scaling AI
The Bank of England summarized late-2025 roundtables with Prudential Regulation Authority-regulated firms on AI and ML adoption, highlighting support for a principles-based approach and existing testing frameworks like the FCA's Supercharged Sandbox. Challenges include risk function caution, skills bottlenecks, cross-border regulatory fragmentation, slow procurement, and data protection issues, with calls for enhanced testing and monitoring.
Bank of England publishes Market Participants Group minutes on global growth risks and dovish repricing of the Bank Rate path
The Bank of England released minutes from the Market Participants Group meeting, highlighting discussions on global growth, geopolitical volatility, and artificial intelligence's impact on productivity. The meeting also covered UK market reactions to the February Monetary Policy Committee outcome, noting a dovish response and differing views on macroeconomic outlook and policy restrictiveness.
Financial Markets Standards Board publishes Spotlight Review on AI in trading and governance expectations
The Financial Markets Standards Board published a Spotlight Review on AI in trading, highlighting its early-stage adoption in electronic trading systems and implications for risk and governance in global wholesale markets. AI is integrated within existing infrastructure under human supervision, with current controls addressing many risks but needing updates as AI complexity grows. The AI Working Group aims to develop guidance on model risk management and trading controls for AI models.
Federal Reserve Board research finds AI infrastructure boom drove a 65% rise in trade in servers and graphics cards
Federal Reserve Board staff released a FEDS Notes analysis on AI infrastructure's impact on global trade, noting increased demand for critical inputs since early 2025. U.S. data-center spending exceeded USD 0.5 trillion in 2025. The analysis proposes a narrow trade measurement definition focused on specific Harmonized System categories. AI-related trade surged, with the U.S. and China leading growth, and supplier economies like Taiwan and Mexico benefiting from increased exports.
National Bank of the Kyrgyz Republic publishes survey-based report on artificial intelligence uptake across Central Asian financial markets
The National Bank of the Kyrgyz Republic released a report titled "Artificial Intelligence in the Financial Markets of Central Asia 2025," based on a survey of 232 financial organizations in Kyrgyzstan, Kazakhstan, and Tajikistan, highlighting AI's role in risk management and fraud control. The study reveals 36% of organizations use AI, 56% plan to implement it within a year, and identifies technological development and personnel shortages as challenges for AI readiness in Central Asia.
Canadian Securities Administrators publish 2025 Systemic Risk Committee report highlighting AI and stablecoin concentration risks
The Canadian Securities Administrators published its 2025 Systemic Risk Committee Annual Report, highlighting the resilience of the Canadian financial system amid economic uncertainty and trade conflicts. Key issues include the impact of artificial intelligence on financial stability, stablecoin concentration risks, and the importance of global regulatory coordination, with no current systemic risk from stablecoins identified.
Commodity Futures Trading Commission appoints members of its Innovation Advisory Committee
The Commodity Futures Trading Commission announced the membership of its Innovation Advisory Committee, which will advise on innovation in derivatives and commodity markets, focusing on technologies like artificial intelligence and blockchain. Chairman Michael S. Selig sponsors the committee, with Michael Passalacqua as the designated federal officer.
Bank of Japan publishes IMES Newsletter on finance workshop on machine learning and AI for financial analysis
The Bank of Japan's Institute for Monetary and Economic Studies released a newsletter summarizing the 2025 BOJ-IMES Finance Workshop, which focused on machine learning and artificial intelligence applications in financial analysis.
International Organization of Securities Commissions publishes 2026 work program prioritising market resilience, investor protection and technological transformation
The International Organization of Securities Commissions (IOSCO) released its 2026 Work Program, highlighting five priorities: financial resilience, investor protection, market evolution, technological transformation, and regulatory cooperation. Key initiatives include reviewing IOSCO principles, over-the-counter derivatives, and operational resilience. IOSCO will focus on investor protection via a TechSprint with the UK Financial Conduct Authority and develop crypto and digital assets assessment methodologies.
Bermuda Monetary Authority signals no immediate AI-specific requirements as it reviews feedback on responsible AI discussion paper
The Bermuda Monetary Authority has issued a stakeholder letter on feedback to its July 2025 discussion paper on responsible AI use in Bermuda’s financial services sector, explaining how this informs ongoing policy work and confirming no new AI-specific rules are planned. Its approach will remain outcomes-focused, principles-led and technology-neutral within the existing framework, embedding AI into current governance, risk, conduct, resilience and third-party oversight, with boards accountable for AI outcomes. The Authority will monitor AI under existing rules, address cross-border and third-party concentration risks, and consider incremental enhancements through its standard consultation process.
U.S. Securities and Exchange Commission outlines AI oversight and disclosure expectations as tokenization reaches the municipal securities market
The U.S. Securities and Exchange Commission noted that emerging technologies like tokenization and artificial intelligence are transforming the municipal securities market while maintaining existing legal obligations. The speech stressed the need for municipal advisors and underwriters to understand blockchain and digital assets, manage compliance risks, and ensure transparency and accuracy in disclosures under Municipal Securities Rulemaking Board Rule G-17 and Rule 15c2-12.
International Actuarial Association consults on draft papers for actuarial use of AI and launches volunteer call for catastrophe modelling task force
The International Actuarial Association is consulting on three draft educational papers from its 2024 Artificial Intelligence Task Force, with comments due by 28 February 2026, and seeks nominations for a task force to develop vendor-neutral training on catastrophe modelling outputs. Program details for the IAA Council and Committee Meetings in Ljubljana have been released, with registration closing on 24 April 2026.
European Central Bank Banking Supervision sets out 2026 supervisory priorities for AI governance, tokenisation and operational resilience
In a keynote speech, Patrick Montagner of European Central Bank Banking Supervision emphasized aligning digital transformation with governance and risk controls, particularly in AI and tokenisation. He highlighted AI-specific risk management shortcomings and concentration risks from non-EU providers, stressing the importance of the Digital Operational Resilience Act for unified incident reporting. The ECB plans to focus on generative AI, third-party dependencies, and operational resilience in 2026.
U.S. Securities and Exchange Commission investment management director urges industry engagement on AI use and LLM-based fund disclosures
Brian Daly, Director of the U.S. Securities and Exchange Commission’s Division of Investment Management, discussed AI in investment management at the Investment Company Institute Winter Board Meeting, highlighting uneven adoption due to liability concerns and oversight challenges. He noted the SEC's outdated technology framework and invited industry engagement on AI-related regulatory issues, including pilot programs and guidance requests.
International Monetary Fund projects AI could lift global productivity by up to 0.8 percentage points a year and urges coordinated guardrails and reskilling
IMF Managing Director Kristalina Georgieva highlighted artificial intelligence as a key growth driver at WGS in Dubai, while cautioning about potential labour market disruptions and divergences between countries. She emphasized policy priorities including macroeconomic support for AI investment, regulatory "guardrails," and international cooperation for data sharing and innovation.
Hong Kong Monetary Authority publishes Fintech Promotion Blueprint under Fintech 2030 with four flagship projects on AI DLT and quantum readiness
The Hong Kong Monetary Authority has released a Fintech Promotion Blueprint to advance AI and distributed ledger technologies, emphasizing data excellence and cyber resilience. The plan includes four flagship projects: a Quantum Preparedness Index, a New Risk Data Strategy, a Fintech Cybersecurity Baseline, and competency development for AI and DLT-enabled financial services.
European Insurance and Occupational Pensions Authority survey finds 65% of EU insurers already using generative AI and flags hallucination and third-party risks
The European Insurance and Occupational Pensions Authority (EIOPA) released a survey on generative artificial intelligence (Gen AI) in the European insurance sector, highlighting rapid adoption for internal efficiency, with most applications at early stages and strong human oversight. Key challenges include data privacy, regulatory compliance, and skills shortages, while EIOPA plans to monitor Gen AI risks, assess the Artificial Intelligence Act's impact, and support related regulatory initiatives.
French Financial Markets Authority publishes study on how financial market participants use artificial intelligence
The French Financial Markets Authority released a study on artificial intelligence usage among French financial market participants, highlighting use cases, benefits, risks, and future expectations based on 100 responses from supervised entities, listed companies, law firms, and audit firms.
Guernsey Financial Services Commission publishes policy statement encouraging firms’ AI adoption without introducing AI-specific rules
The Guernsey Financial Services Commission has issued a policy statement supporting the use of artificial intelligence (AI) within its principles-based regulatory regime, allowing firms to implement AI without specific approval. Firms must adhere to existing governance and financial crime rules, and the Commission encourages discussions on potential rule adaptations for technology trials.