The Financial Stability Board (FSB) has released a report titled “The Impact of Artificial Intelligence on Financial Stability”, urging tighter control over AI development while highlighting its benefits and potential risks.

The international organization analyzed how neural networks influence the global financial sector and proposed measures to mitigate potential threats. Key benefits of AI in finance include:

Enhanced operational efficiency.
Personalized financial products.
Improved regulatory compliance.
Advanced and more accurate data analytics.

Risks Associated with AI in Finance

However, the FSB also warned of vulnerabilities linked to AI integration in financial systems, such as:

Dependence on third parties.
Concentration among service providers.
Cybersecurity risks.
Market correlations.
Data quality issues.

The report also flagged the potential misuse of AI by malicious actors.

“Generative AI increases the potential for fraud and misinformation in financial markets. Poorly configured AI systems that are not calibrated to operate within legal, regulatory, and ethical boundaries could engage in actions detrimental to financial stability,” the report stated.

Recommendations for Mitigating Risks

To address these challenges, the FSB suggested:

Eliminating data errors during the development of AI systems used in finance.
Strengthening collaboration between regulators and the private sector.
Revising and improving legal frameworks at both local and international levels to reduce vulnerabilities.

Regulatory Developments

Earlier this year, the European Union passed a comprehensive law regulating AI usage, underscoring the importance of safely and ethically integrating this technology into key industries. The FSB’s recommendations align with such initiatives, emphasizing the global need for robust oversight and ethical AI deployment.