Financial stability at risk from artificial intelligence - Bank of England says

The Bank of England has warned that the widespread adoption of artificial intelligence in the financial sector could jeopardize systemic stability. Officials noted that reliance on a small number of third-party technology providers creates operational vulnerabilities and makes it difficult to predict how interconnected models might behave during periods of market stress. This assessment highlights the tension between adopting efficiency-boosting tools and maintaining the necessary oversight to prevent cascading failures across the global financial system.