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Banking sector faces AI, ML Risks, Basel committee chair warns



Banks must manage risks associated with using artificial intelligence (AI) and machine learning (ML) in their operations, stated Bank of Spain Governor Pablo Hernandez de Cos, chair of the Basel Committee on Banking Supervision. Speaking in Washington, de Cos emphasised the importance of incorporating AI and ML risk considerations into daily governance to prevent potential amplifications of future banking crises. He highlighted the need for collaboration among central banks and regulators to establish regulatory standards for these technologies. The Basel Committee plans to release a detailed report on the digitalisation of finance and its regulatory implications soon, underscoring the ongoing evolution and interconnectedness of global financial systems.

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