Financial regulators scramble to counter AI rise with own tools

Swiss financial regulator FINMA president Marlene Amstad has stated that banks and financial sector watchdogs must move quickly to adopt new technology to address system vulnerabilities as artificial intelligence increases cybersecurity risks.

The article highlights the growing concern among financial regulators about the dual role of AI: it both enables more sophisticated cyberattacks and offers tools for countering them. Amstad emphasized the urgency for regulators to keep pace with technological advancements in the financial sector. The IOSCO forum is intended to facilitate knowledge sharing and coordination among watchdogs globally.

This initiative reflects a broader trend of regulatory bodies attempting to leverage AI to monitor and manage risks posed by the same technology. The article does not specify particular AI tools or frameworks being considered, nor does it provide concrete timelines. The focus remains on the general imperative for regulators to adapt their supervisory approaches in response to the evolving threat landscape.