The Office of the Superintendent of Financial Institutions released its 2026 Semi-Annual Risk Outlook, warning that advancing frontier artificial intelligence can amplify cyber, technology, third-party and reputational risks across Canada’s financial system. The principal risks identified in its 2026–2027 Annual Risk Outlook remain in focus, while geopolitical uncertainty, economic change and rapid technological advances have intensified the risk environment. Financial institutions should strengthen governance, controls and testing as AI capabilities advance, with boards and senior management remaining accountable for the associated risks. OSFI is expanding its capacity to assess frontier AI, technology concentration and critical third-party dependencies, building on technology risk bulletins issued this year. It also noted AI’s potential to improve productivity and risk management and assessed the Canadian financial system as resilient, supported by strong capital, liquidity, governance and risk management.
Canada's Office of the Superintendent of Financial Institutions focuses semiannual risk outlook on frontier AI threats
The Office of the Superintendent of Financial Institutions warned that frontier AI can amplify cyber, technology, third-party and reputational risks across Canada’s financial system. Institutions should strengthen governance, controls and testing, while boards and senior management remain accountable for managing these risks. OSFI is also enhancing its assessment of frontier AI, technology concentration and critical third-party dependencies.