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Lagarde says AI is testing Europe’s systemic risk oversight
Lagarde said nearly 9 in 10 significant euro area banks use generative AI, and a survey found 7 in 10 EU securities market firms plan to increase investment in AI.
Christine Lagarde, speaking at the European Systemic Risk Board (ESRB) conference, marked 15 years since the body was created in the wake of the global financial crisis and the European sovereign debt crisis, with the goal of viewing systemic risk across the financial system rather than through any single authority’s lens. She said the ESRB was designed to bring central banks and supervisors together to provide a broader perspective on risks building across institutions and markets.
Lagarde said the rising importance of artificial intelligence is now putting that system-wide approach to the test, noting that generative AI is already widely used in finance. According to her remarks, nearly nine out of ten significant euro area banks use generative AI.
She also cited a survey of EU securities market firms showing that seven out of ten respondents expect to increase their investment in AI, and said AI could help institutions analyze large volumes of data faster and improve how they assess risk.