APRA and ASIC expect entities to act now and provide evidence that decision-making, escalation pathways, assurance, recovery and governance processes can operate at the pace of emerging frontier AI threats. Defensive AI may support threat intelligence, vulnerability detection and incident response, but the regulators stressed that it cannot replace sound cyber fundamentals or each entity’s individual accountability, even as industry-wide information sharing and coordinated preparedness become more important.
2026-08-27Australian Prudential Regulation Authority
Australian Prudential Regulation Authority and Australian Securities and Investments Commission urge firms to demonstrate tested resilience to frontier AI risks
The Australian Prudential Regulation Authority and Australian Securities and Investments Commission have urged financial entities to turn awareness of frontier AI risks into tested governance and operational resilience. Firms should strengthen cyber fundamentals, pre-establish crisis decisions and escalation authority, test recovery under compressed timeframes and understand shared third-party dependencies. Frontier AI preparedness will remain a heightened regulatory focus.