AI Raises Big Tech’s Systemic Threat to EU Banks, Watchdog Warns

AI adoption will expose European lenders to even greater systemic threats from their reliance on foreign tech giants, the Netherlands’ top financial regulator warned as he called for swift action to mitigate risks.

“There is urgency to this matter,” Steven Maijoor, chair of supervision at the Dutch National Bank, said in an interview. “If you use more AI, there is also increased reliance on parties outside of Europe.”

The US is home to major providers of cloud services such as Microsoft Corp., Amazon.com Inc. and Alphabet Inc., which banks depend on to host vast portions of their infrastructure, ...