AI Pulse stories about AI in finance, newest first.
In a speech in Frankfurt, Christine Lagarde, speaking at the European Systemic Risk Board's annual conference, identified three areas of AI risk for finance. They were autonomous trading agents acting in misaligned ways, faster automated cyberattacks, and heavy reliance on frontier models developed in the US and China. She argued Europe needs its own AI capabilities and wider international cooperation.
In a Bank of England piece published today, Governor Andrew Bailey argues that regulation is not the right starting point for frontier AI. He calls first for rigorous testing before and after deployment and for credible points of intervention, so society keeps the ability to govern increasingly capable systems. He also says frontier AI materially raises the scale and sophistication of cyber threats to the financial system.
UK angle: The Bank of England is the UK's central bank and sets expectations for UK financial firms' AI resilience.
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