AI-driven cyber risk is top concern for global financial stability, watchdog says


AI-driven cyber risk is top concern for global financial stability, watchdog says <br> Financial Stability Board Chair Andrew Bailey said on Monday that the impact of AI on cyber risk was the most immediate concern for the global financial system, saying ​the technology could change the speed, scale and economics of an attack. The ​FSB is a global watchdog that seeks to identify and manage ⁠risks in financial systems. In a letter to G20 finance ministers and central ​bank governors ahead of meetings this week, Bailey, who also serves as the Bank ​of England governor, said many countries do not have systems in place to manage the deployment of advanced artificial intelligence models. The financial sector&#39;s dependence on a handful of powerful tech providers could undermine ​system-wide market confidence, he added. Read More: EU subjects ChatGPT, Reddit, Roblox to stricter oversight under Digital Services Act The comments highlighted concerns among regulators that advanced AI ​could&nbsp;accelerate the discovery of cyber vulnerabilities, forcing faster patching&nbsp;and creating potential operational and resilience &zwnj;challenges ⁠if testing and recovery processes are unable to adapt safely. His comments follow the&nbsp;US administration&#39;s tightly controlled&nbsp;rollout&nbsp;of Anthropic&rsquo;s powerful Mythos model, restricting it at one point to only US nationals. &ldquo;Recent developments highlight the importance of ensuring that advances in ​capability are matched by ​resilience and preparedness,&rdquo; ⁠he said. Supporting safe and responsible model release &ldquo;on a global basis&rdquo; should be a priority, he said. In July, an OpenAI ​agent&nbsp;escaped a controlled testing environment&nbsp;and hacked AI company Hugging ​Face, raising concerns about ⁠the potential for AI systems to circumvent safeguards. Bailey reiterated prior warnings about the risk of potential market corrections, citing stretched AI valuations and frailties in government debt markets, while ⁠flagging ​as an emerging concern the increase in the ​use of leverage in equity markets. The US Treasury earlier this month intervened to&nbsp;cap yields&nbsp;on long-term ​bonds that had reached multi-decade highs. <br> <img src="https://tribune.com.pk/story/2626747/ai-driven-cyber-risk-is-top-concern-for-global-financial-stability-watchdog-says" alt=" AI-driven cyber risk is top concern for global financial stability, watchdog says" width="100%">

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