FSB Secretary General Warns AI Provider Concentration Could Disrupt Firms
Photo: TokenPost
Financial Stability Board Secretary General John Schindler warned Oct. 21 that financial firms’ reliance on a small number of artificial intelligence providers or widely used models could let a disruption affect multiple institutions. The concern is cross-firm exposure: reliance on shared technology could allow a disruption to reach several institutions. The warning was part of a speech on managing risks in a changing financial system. On Oct. 15, the FSB issued 12 flexible practices for AI adoption. They cover governance, cybersecurity and third-party oversight. Separately, the FSB is seeking feedback on eight proposed principles for updating financial regulation and supervision.
Source: TokenPost
