US and European regulators intensify scrutiny of AI risks in banking

US and European banking regulators have stepped up scrutiny of artificial-intelligence risks, questioning lenders on advanced models and demanding stronger cyber recovery plans.

• The Federal Reserve, Office of the Comptroller of the Currency and FDIC have asked banks about their use of advanced AI models and the controls placed on them.
• The Bank of England and European Central Bank are pressing banks to improve recovery plans against cyberattacks.
• The ECB has given lenders until the end of October to submit plans to counter AI-backed cyber threats.
• The IMF warned Tuesday of "complacency" in global financial markets, saying a major cyberattack could undermine trust.