Rapid AI adoption poses systemic risks to financial sector, ECB chief warns

European Central Bank (ECB) President Christine Lagarde warned that the rapid adoption of artificial intelligence (AI) in financial markets is creating systemic risks. Speaking at the 10th annual conference of the European Systemic Risk Board (ESRB), she highlighted concerns in market trading, cyber resilience, and geopolitics, calling for enhanced macroprudential monitoring and global cooperation to protect economic stability.