Australian Regulators Working With Banks to Monitor AI Adoption

Australia’s financial regulators are engaging with the industry to understand and monitor the adoption of artificial intelligence, the Reserve Bank said on Thursday.

The use of AI has brought economic benefits as banks have been using the tool for both back- and front-office operations to improve efficiency, but its widespread use brings risks, the RBA said in its semi-annual Financial Stability Review.

“How AI-related risks could interact with other risks and vulnerabilities in the global economy and financial system, including geopolitical risk, is largely unknown as there is limited relevant experience to draw on,” it said.

The RBA highlighted four ...