Lagarde warns of AI risks to the financial system
European Central Bank (ECB) President Christine Lagarde warned that the rapid adoption of artificial intelligence in finance could create new systemic risks.
Lagarde said around 90% of significant euro-area banks are using generative AI and cautioned that autonomous AI agents could amplify market shocks and accelerate the exploitation of cybersecurity vulnerabilities.
Lagarde also highlighted that the most advanced AI models are concentrated in the United States and China, warning that rising geopolitical tensions could threaten Europe's access to critical technologies.
While describing the EU AI Act as an important step, she called for global cooperation to manage the risks posed by increasingly powerful AI models.
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