What's new
Overview
This deep dive examines the latest developments in artificial intelligence, including emerging adoption patterns, key risk watch points, evolving policy and supervisory guidance, and research on the economic impact of AI.
What's new
Financial Planning Standards Board finds rising AI adoption among planners and growing use by clients
Financial Planning Standards Board research found that financial planners are increasingly adopting AI to improve efficiency, analysis and client capacity. Eighty-three percent expect AI to improve client service, while growing client use of AI is creating more demand for planners to contextualize or correct generated information.
World Bank projects 2.2% growth for Latin America and the Caribbean in 2026 and outlines uneven AI gains
The World Bank projects 2.2% growth for Latin America and the Caribbean in 2026, with stronger policy performers outpacing a modest regional average amid downside risks from energy prices, high debt and El Niño. It sees scope for AI to raise productivity but identifies skills, management and organizational capacity as the main barriers to productive adoption.
World Bank projects 2.1% MENAAP contraction in 2026 and highlights AI productivity potential
The World Bank projects a 2.1% contraction across MENAAP in 2026, with the Strait of Hormuz closure driving a 4.3% average contraction in Gulf Cooperation Council economies. Growth excluding Iran could rebound to 7.8% in 2027 if the conflict subsides by the end of 2026. Artificial intelligence could raise productivity in 13% to 20% of regional jobs, but skills, infrastructure, data and private sector gaps must be addressed.
World Bank projects India’s economy to grow 7.1% in FY27 and calls for measures to broaden AI adoption
The World Bank projects India’s economy to grow 7.1% in FY27, supported by domestic demand and exports, while warning of elevated external risks. It calls for stronger infrastructure, workforce skills and business conditions to broaden AI adoption, alongside clear rules for data security and privacy.
European Central Bank finds firms in AI intensive sectors shifting debt financing from banks to markets
The European Central Bank finds that firms in AI intensive sectors increasingly use market based debt financing and carry less leverage than other firms. Their investment may therefore be less sensitive to bank lending and cash flow channels, but more exposed to longer term market rates. Deeper European capital markets could improve access to funding and channel more savings into European AI investment.
Thailand's Office of Insurance Commission tests cyber resilience of 67 insurers against AI related threats
Thailand’s Office of Insurance Commission completed two cyber exercises involving 67 life and nonlife insurers. The simulations tested incident response and regulatory coordination against increasingly complex threats involving AI, external providers and interconnected digital systems.
South Korea Financial Services Commission directs sectorwide cybersecurity reviews following reported intrusions
The South Korea Financial Services Commission directed all financial firms to complete and report comprehensive cybersecurity reviews following reported intrusions. Firms must tighten external access, authentication and threat detection, apply shared attack intelligence, and protect and compensate affected consumers. The authorities will strengthen sectorwide monitoring and may take strict action where known risks are not addressed.
Bank of Mongolia hosts SEACEN training on data analytics and AI for 41 central bank professionals
The Bank of Mongolia and the Southeast Asian Central Banks Research and Training Centre are training 41 central bank professionals from 12 countries in modern data analytics. The program covers visualization, nontraditional data, machine learning, artificial intelligence and natural language processing for policymaking.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan outlines end-to-end oversight priorities for autonomous AI agents
Kazakhstan’s financial regulator outlined an end-to-end approach to supervising AI agents, centered on transparency, human control and customer protection. It called for safeguards against autonomous-agent risks, including hidden jailbreak attacks. The agency is also expanding supervisory AI use and operates AI agents within the Qainar cyber defense system, which connects 100 financial institutions.
Council of Europe enlarged Assembly calls for responsible AI use and deeper OECD impact assessments
The Council of Europe enlarged Assembly called for responsible AI adoption supported by worker consultation, skills policies and safeguards against intrusive or opaque workplace systems. It also urged human verification and clear editorial responsibility for AI related journalistic content, while asking the OECD to deepen its assessment of AI’s wider impacts.
Financial Action Task Force of Latin America advances regional cooperation on artificial intelligence in financial intelligence
The Financial Action Task Force of Latin America convened financial intelligence units from eight countries to examine the responsible use of artificial intelligence in financial intelligence. Participants identified potential applications and implementation conditions, and contributed to work on machine learning and agentic artificial intelligence models.
International Monetary Fund estimates AI could add 0.1 to 0.6 percentage points to annual growth in the Middle East and Central Asia
The International Monetary Fund estimates AI adoption and investment could add 0.1 to 0.6 percentage points to annual real GDP growth across the Middle East and Central Asia, with the largest gains in Gulf economies. Returns will depend on preparedness, technology access and demand for AI services. Leveraged investment and labor market disruption create financial and social risks requiring stronger oversight, skills policies and worker support.
European Central Bank finds euro area firms expect to finance AI investment mainly from internal funds
European Central Bank analysis finds that 72% of euro area firms planning AI investment expect to use internal funds. External finance is more common for collateral backed technology and infrastructure spending than for employee training or specialist recruitment. This financing pattern could limit the scale and pace of AI adoption.
Bank for International Settlements finds circular AI investment relationships increase opacity and macroeconomic risks
The Bank for International Settlements found that circular investment and supply chain relationships are widespread among AI firms, accounting for 46.4% of AI-to-AI deal value between 2021 and 2025. While these arrangements can secure critical inputs and address financing frictions, they can obscure demand and amplify interconnected losses. Complex terms, limited disclosures and cross-jurisdictional exposures also make the risks difficult to monitor.
European Central Bank President Lagarde urges systemwide action on AI risks to trading, cyber resilience and model access
European Central Bank President and ESRB Chair Christine Lagarde urged systemwide monitoring of AI risks to trading, cyber resilience and access to frontier models. She called for updated cyber defences, coordinated response plans and stronger European AI capabilities to reduce dependence on externally controlled technology.
Bank for International Settlements’ Basel Committee approves machine-readable Pillar 3 standard and G-SIB window-dressing revisions
The Bank for International Settlements’ Basel Committee approved a final machine-readable Pillar 3 standard, G-SIB assessment results and revisions to curb year-end window dressing. It will consult on stronger Pillar 2 guidance for interest rate risk and the treatment of European banking union exposures in the G-SIB framework. Updates on the cryptoasset standard review, liquidity principles and final Pillar 3 requirements are expected by the end of 2026.
Australia's Council of Financial Regulators flags rising bond yields and AI-related cyber threats
Australia's Council of Financial Regulators said rising longer-term bond yields warrant close monitoring, although markets remain orderly and the domestic financial system is well placed to manage shocks. It urged financial institutions to strengthen resilience and flagged increasingly complex cyber threats from frontier artificial intelligence. The Council may meet more frequently if needed.
Reserve Bank of Australia finds financial system resilient but warns global and operational vulnerabilities are mounting
The Reserve Bank of Australia assessed the financial system as resilient, with most borrowers able to withstand weaker conditions and banks capable of continuing to lend during a severe downturn. The main risks stem from global market vulnerabilities, geopolitical tensions and operational threats linked to AI, cyberattacks and concentrated service providers. Financial institutions should strengthen operational recovery, crisis testing and liquidity risk management while maintaining prudent lending standards.
Federal Reserve Board analysis finds AI skills in 11% of manufacturing job postings and a 70% advertised wage differential
Federal Reserve Board analysis finds that AI related skills reached 11% of manufacturing job postings, led by demand for machine learning capabilities. AI related postings advertised wages averaging about 70% more across manufacturing, while the differential for production roles has averaged roughly 30% since 2023.
Executives’ Meeting of East Asia-Pacific Central Banks assesses AI shocks, financial stability risks and central bank adoption
The Executives’ Meeting of East Asia-Pacific Central Banks assessed how AI could generate interacting economic and financial shocks, including labor disruption, asset price corrections, rising leverage and concentration among technology providers. About half of member central banks used AI for general tasks as of 2025, with some expanding into specialized functions. The note emphasizes human oversight, strong governance, systemwide supervision and regional cooperation.
Financial Stability Board Americas group examines stablecoin risks, emerging technology and crisis preparedness
The Financial Stability Board’s Americas regional group assessed financial stability risks from geopolitical uncertainty, extreme weather, capital flows and exchange rates. Members also discussed global stablecoin arrangements, AI and quantum computing risks, and preparedness for cyber incidents and third-party outages.
Australian Securities and Investments Commission sets 2026–27 sector supervisory priorities spanning AI, conduct and member services
The Australian Securities and Investments Commission has set sector-specific supervisory priorities for 2026–27, covering AI, lender conduct, superannuation services, insurance practices and market integrity. The plans were coordinated with other regulators to reduce duplication and give regulated entities earlier visibility of upcoming supervisory work.
Federal Reserve Board Governor Christopher Waller highlights trust and security challenges as AI agents reshape payments
Federal Reserve Board Governor Christopher Waller said AI could improve cross-border screening, routing and liquidity management while increasing cybersecurity risks. Scaling autonomous agent payments will require new authentication, liability and fraud controls, as well as decisions on interoperable standards and open versus closed commerce systems.
US Federal Reserve Board Vice Chair Bowman urges community banks to strengthen cyber defenses as AI expands threats
Federal Reserve Board Vice Chair for Supervision Michelle W. Bowman urged community banks to reinforce cyber hygiene as AI makes attacks faster and more sophisticated. She emphasized core controls, employee training, incident response testing and active oversight by boards and senior management. AI can also strengthen defenses, but banks should deploy it with sound risk management.
Swedish Financial Supervisory Authority launches review of financial firms’ defenses against AI enabled cyberthreats
The Swedish Financial Supervisory Authority has launched an on-site review of how financial firms address cyberthreats from advanced AI models. It will assess whether firms identify emerging risks and adapt their measures to prevent, detect and manage increasingly automated attacks.