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
Monetary Authority of Singapore urges actuaries to strengthen AI governance, forward-looking stress testing and inclusive insurance
The Monetary Authority of Singapore urged actuaries to strengthen AI governance, forward-looking scenario analysis and stress testing as risks become more interconnected. It also called for affordable and accessible insurance products that respond to aging populations, disability, mental health needs and emerging climate technologies.
Australian Securities and Investments Commission warns of AI-enabled investment scams after 19,400 takedowns in FY26
ASIC warned that AI-generated endorsements and coordinated networks of fake online content are making investment scams harder to detect. It removed more than 19,400 scams in FY26, up 182%, while reported losses linked to impersonated public figures reached AUD 7.4 million. Consumers should independently verify licence details against ASIC’s registers rather than rely on online searches or advertisements.
Bermuda Monetary Authority consults on principles-based guidance for responsible AI use in financial services
The Bermuda Monetary Authority is consulting on guidance for applying existing regulatory obligations to artificial intelligence use in the regulated financial services sector. The principles-based framework would cover areas including governance, risk management, transparency, cybersecurity and operational resilience, without creating new requirements or a separate licensing regime. Comments are due by Oct. 30, 2026.
Bank Indonesia calls for BRICS cooperation on local currencies, cross-border payments and AI capacity
Bank Indonesia urged BRICS members to deepen cooperation on local currency use, cross-border payments and domestic artificial intelligence capacity. It also backed digital public infrastructure, greater climate finance access for developing countries and a stronger role for those countries in global economic governance.
Bermuda Monetary Authority consults on proportionate AI guidance
The Bermuda Monetary Authority is consulting on proportionate guidance for applying existing regulatory requirements to AI use across regulated financial services. The framework would cover traditional, generative and agentic AI without creating new obligations or a separate approval regime, while keeping regulated entities accountable for third-party and group-provided systems. Comments are due by Oct. 30, 2026.
National Association of Insurance Commissioners president outlines AI oversight, private credit and catastrophe risk priorities
National Association of Insurance Commissioners President Scott White outlined ongoing reforms covering AI, private credit and catastrophe risk. Work includes a 12-state pilot of an AI Risk Evaluation Supplement, stronger oversight of third-party data and model vendors, and enhanced scrutiny of insurers’ investment portfolios. The NAIC is also expanding data and analytical tools for homeowners insurance markets.
Germany’s Federal Ministry of Finance announces Cabinet approval of customs overhaul with AI powers and administrative asset seizure
Germany’s Federal Cabinet approved a customs overhaul that expands powers against financial and organized crime while restructuring and digitizing the nearly 49,000-employee service. The measures include AI-supported analysis, cryptoasset seizure and administrative seizure of assets suspected of unlawful origin, subject to fiscal court approval for confiscation. They also strengthen sanctions enforcement, data sharing and the Financial Intelligence Unit’s role.
South Korea Financial Services Commission opens applications for 15 places in second-half D-Testbed program
The South Korea Financial Services Commission is seeking 15 teams for the second-half 2026 D-Testbed, offering 12 weeks of access to real data, remote analytics and expert support. Five artificial intelligence-track teams will also receive high-performance computing resources, and applications close Sept. 8.
Bank of Italy reports 49 technical cooperation activities involving more than 750 experts from 61 central banks
The Bank of Italy reported that more than 750 experts from 61 central banks joined 49 technical cooperation activities in the first half of 2026. Topics included artificial intelligence, supervisory technology, operational resilience, the digital euro, payments and market infrastructures.
New Zealand Financial Markets Authority launches thematic review of artificial intelligence in financial advice
The New Zealand Financial Markets Authority has launched an exploratory review of artificial intelligence use across the financial advice sector, focusing on adoption, governance, risks and regulatory questions. Four stakeholder surveys are open until Sept. 4, 2026. Findings may inform future guidance, supervisory priorities or policy work.
Thailand Office of Insurance Commission sets 2027 priorities for proactive, risk-based insurance supervision
The Thailand Office of Insurance Commission set its fiscal 2027 organizational priorities, emphasizing measurable outcomes and proactive, risk-based supervision. Priorities include insurance access, the protection gap, product governance, open insurance and greater use of digital technology and artificial intelligence.
HM Treasury and U.S. Department of the Treasury outline regulatory coordination on digital finance, resilience and market modernization
HM Treasury and the U.S. Department of the Treasury outlined discussions on digital assets, stablecoins, artificial intelligence, operational resilience and regulatory modernization at the latest UK-U.S. Financial Regulatory Working Group meeting. The dialogue also covered banking, non-bank finance, capital markets and the Transatlantic Taskforce for Markets of the Future, with the group due to reconvene in early 2027.
INTERPOL finds AI enables 55% of reported African cybercrime as losses reach USD 484 million
INTERPOL found that AI enables 55% of reported cybercrimes across Africa, while cybercrime-related losses have more than doubled since 2024 to USD 484 million. Gaps in real-time data sharing among banks, telecommunications companies and law enforcement are facilitating scams and synthetic identity fraud. The report calls for stronger cross-border cooperation, standardized digital forensics, AI training and formal public-private partnerships.
Hellenic Capital Market Commission signs cooperation memorandum with University of West Attica on sustainable finance and technology
The Hellenic Capital Market Commission and the University of West Attica established a cooperation framework covering sustainable finance, corporate governance, financial technology, artificial intelligence, cybersecurity and digital transformation. They will undertake joint research and educational initiatives, exchange expertise and support financial literacy and specialized workforce development.
European Banking Federation and social partners assess generative AI impacts across banking, audiovisual and telecommunications sectors
The European Banking Federation and other European social partners published an assessment of generative AI’s effects on banking, audiovisual and telecommunications services. The report identifies issues for social dialogue and potential policy responses to manage adverse impacts and support beneficial uses.
European Commission brings AI transparency rules into effect, with corporate fines of up to EUR 15 million or 3% of global turnover
The European Commission’s AI transparency rules now require disclosure of interactions with AI and labelling and machine-readable marking of specified AI-generated or manipulated content. Companies may face fines of up to EUR 15 million or 3% of global annual turnover, while EU institutions may be fined up to EUR 750,000.
Brazilian Securities and Exchange Commission creates financial technology division and formalizes AI governance responsibilities
The Brazilian Securities and Exchange Commission created a Financial Technology Division and formalized internal responsibilities for advanced analytics and ethical, responsible AI use. The division will initially support the 2026-2027 securities tokenization project, the next regulatory sandbox round and engagement with international fintech discussions.
European Supervisory Authorities call for consistent risk-based supervision of frontier AI cyber risks
The European Supervisory Authorities called for consistent, risk-based supervision of cyber risks arising from frontier AI models. Financial entities should maintain robust governance and risk management frameworks, while DORA oversight of critical ICT third-party providers will also address these risks.
European Supervisory Authorities call for risk-based controls against frontier AI cyber risks
The European Supervisory Authorities called on financial entities to strengthen proportionate prevention, detection and management controls for cyber risks from frontier AI models. Firms should establish clear governance, update risk appetite and resilience arrangements, and enhance continuous monitoring and incident response. AI-related risks will also inform oversight of critical ICT third-party providers in 2027.
European Insurance and Occupational Pensions Authority flags elevated market risks and worsening cyber outlook for pension institutions
The European Insurance and Occupational Pensions Authority found that market risks remain elevated for occupational pension institutions and that the 12-month outlook is worsening amid geopolitical tensions, high valuations and correction concerns. Cyber risks are also rising, although the sector remains resilient due to robust defined benefit scheme finances and positive portfolio performance.
European Insurance and Occupational Pensions Authority finds insurance sector risks stable at medium level, digitalisation and cyber risks rise to high
The European Insurance and Occupational Pensions Authority assessed European insurance sector risks as stable at a medium level overall. Digitalisation and cyber risks rose to high, while geopolitical tensions weakened the outlook for macroeconomic and market risks.
Czech National Bank establishes AI Division to centralize AI deployment and oversight
The Czech National Bank will establish an AI Division on Aug. 1, 2026, to centralize AI and machine learning deployment, priorities and oversight. The division will be led by Janis Aliapulios and created from existing resources without increasing total positions.
Spanish National Securities Market Commission finds financial stability remains solid, flags technology stock and AI risks
The Spanish National Securities Market Commission found that financial stability remains solid, with low system stress despite geopolitical tensions and higher rate expectations. It flagged technology stock overvaluation and concentration, as well as AI-related risks, while noting that Spanish funds’ liquidity, leverage and short fixed-income duration mitigate vulnerabilities. Spain has authorized 20 crypto-asset service providers, with 16 applications pending.
Organisation for Economic Co-operation and Development finds dynamic AI markets alongside emerging concentration risks
The OECD found no systematic link between non-generative AI adoption and increased market power in France and Portugal, but identified emerging concentration risks in AI innovation. Generative AI may help smaller firms compete, although firms with stronger capabilities appear better placed to benefit. AI start-ups attract substantial venture capital but are frequently acquired by incumbents, supporting continued market monitoring.
Germany's Federal Financial Supervisory Authority gains market surveillance powers over financial sector AI systems
Germany’s Federal Financial Supervisory Authority has gained powers to supervise AI systems directly linked to regulated financial activities and may fine firms for violations. Its remit covers transparency obligations, prohibited practices and high-risk uses such as creditworthiness and insurance risk assessments. Initial transparency requirements take effect on August 2, 2026, with high-risk system requirements following on December 2, 2027.