“Errors in AI systems, data privacy concerns and market distortions could amplify existing risks,” the RBNZ noted. It also pointed to increasing reliance on a few major third-party AI providers, which could lead to market concentration, new contagion risks, and greater vulnerability to cyberattacks.
Kerry Watt, RBNZ’s director of financial stability assessment and strategy, underscored the need for vigilance: “There is considerable uncertainty around how AI will shape the financial system. We will continue to closely monitor developments … to ensure the system remains well-positioned to manage emerging risks.”
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
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