IMF warns AI risks could push more global banks to fail

Bank profits are rising, but the fund says frontier AI models are making the worst-case outcomes for the financial system worse Global banks are making more money than before. The International Monetary Fund doesn’t think that will save them from the next big threat. The IMF says more of the world’s banks may fail in a doomsday scenario because of AI-related risks, even as their profits increase. Balance sheets look healthier while the worst-case outcomes look meaner. The concern is not that a chatbot approves a bad mortgage.

Source: Crypto Briefing