ECB warns of potential AI risks in finance, calls for monitoring and possible regulatory measures.

The European Central Bank (ECB) warns of potential risks associated with AI in finance, including herding behavior, over-reliance on a limited number of providers, and advanced cyberattacks. The ECB suggests that AI's implementation in the financial sector should be closely monitored, and regulatory measures may be needed if current prudential frameworks are inadequate in addressing these risks. European financial institutions' adoption of AI remains in its early stages.

May 15, 2024
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