Overview

• The Bank for International Settlements said there is an urgent need for central banks and regulators to raise their game as households and firms rapidly adopt AI.
• BIS urged authorities to become informed users of AI by incorporating the technology and non‑traditional data into their own analytical work.
• A separate Financial Stability Board report warned that AI‑driven fraud and disinformation could erode trust, amplify volatility, and trigger flash crashes or bank runs.
• The FSB cautioned that reliance on the same AI models and specialized hardware could create herd‑like behavior and system vulnerabilities if alternatives are limited.
• The reports encouraged collaboration among authorities, with the FSB chaired by Bank of England governor Andrew Bailey, and echoed earlier concerns about an AI‑fueled market bubble raised by the Bank of England and JP Morgan’s Jamie Dimon.