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
Arab Monetary Fund convenes finance ministers on fiscal policy, artificial intelligence and international tax coordination
The Arab Monetary Fund convened Arab finance ministers to discuss fiscal policy, artificial intelligence, sustainable infrastructure finance and international tax developments. The meeting also reviewed preliminary findings from a new annual public finance report due in May 2027 and coordinated regional positions ahead of the IMF and World Bank Annual Meetings.
Federal Reserve Board Governor Cook says AI is delaying disinflation and may disrupt labor markets
Federal Reserve Board Governor Lisa D. Cook said AI investment is adding near-term inflation pressure that productivity gains are unlikely to offset later in 2026. She warned that deeper adoption could temporarily increase unemployment through skills mismatches, while reiterating that future rate adjustments will depend on inflation, labor data and the economy's response to recent tightening.
United Arab Emirates Ministry of Finance convenes Arab finance leaders on financial stability, AI and tax standards
The United Arab Emirates Ministry of Finance convened Arab finance leaders to discuss fiscal conditions, macroeconomic resilience, AI, sustainable finance and international tax standards. The UAE outlined plans to move 50% of federal operations and services to Agentic AI models within two years and reiterated its application of the domestic minimum top-up tax from 2025.
Central Bank of Malta sets 2027-2030 strategy focused on price stability, financial resilience and digital transformation
The Central Bank of Malta’s 2027-2030 strategy prioritizes stronger monetary and macroprudential analysis, financial-sector resilience, secure payments and digital transformation. It will broaden surveillance of emerging risks, strengthen crisis preparedness, support pan-European payment solutions and digital euro readiness, and further integrate sustainability criteria into financial asset management.
United Arab Emirates Ministry of Finance assesses agentic AI across six financial processes
The United Arab Emirates Ministry of Finance convened a Customer Council to assess the responsible use of agentic AI across six financial processes. Recommendations from the sessions will guide service redesign and the governance and monitoring of future digital services.
Bank for International Settlements maps limited scope for AI and robots to offset workforce ageing across 135 economies
A Bank for International Settlements bulletin finds that AI and robot exposure is often concentrated in industries with younger workforces, limiting automation’s ability to offset population ageing. Its index covering 135 economies shows more favourable conditions in richer economies overall, although several advanced economies face poor alignment. Policy responses may require greater labour force participation, worker mobility or immigration where automation potential is limited.
Monetary Authority of Singapore unveils AI workforce initiatives, 23 financial institutions commit to train over 80,000 employees by 2028
The Monetary Authority of Singapore unveiled initiatives to prepare financial sector employees for AI driven job changes. Under the new IBF AI Workforce Co-Lab, 23 institutions will train more than 80,000 Singapore employees in critical AI skills by 2028 and develop role specific pathways for leaders, wealth managers and operations staff. Additional measures cover job redesign, career transitions and AI training for undergraduates.
Monetary Authority of Singapore outlines expanded AI training and 1,000 financial sector internship and traineeship opportunities
The Monetary Authority of Singapore outlined expanded financial sector workforce measures, including nearly 60 accredited AI programs and training on responsible AI use. Around 1,000 internship and traineeship opportunities from 20 financial institutions will be available over the next year, supported by closer links between education and industry.
Slovenia Insurance Supervision Agency assesses insurance growth and concentration risks from AI and energy investment
The Slovenia Insurance Supervision Agency assessed how AI, data center and energy investment is expanding commercial insurance demand while increasing geographic and supply chain concentration risks. Slovenian gross written premiums rose 14.5% to EUR 1.22 billion in the first half of 2026, with surety insurance premiums doubling amid strong infrastructure investment.
Australian Securities & Investments Commission strengthens algorithmic and AI trading safeguards under 2028 market integrity rule changes
The Australian Securities & Investments Commission has finalized stronger, technology neutral controls for automated and AI enabled trading, with amended Market Integrity Rules taking effect in 2028 after an 18-month transition. The reforms strengthen algorithm testing, monitoring and governance while harmonizing requirements across securities and futures markets. ASIC is also consulting on consolidated guidance that would reduce relevant material for securities participants by almost 60%.
Dutch Authority for the Financial Markets finds low consumer engagement with finances as AI use expands
The Dutch Authority for the Financial Markets found that many consumers have limited knowledge of their pensions and insurance and rarely revisit financial choices. One in seven used AI for financial matters in the past year, while embedded insurance and low reporting of suspected investment fraud highlight emerging consumer protection risks.
European Securities and Markets Authority announces 2027 digital innovation supervisory priority focused on AI and tokenisation
The European Securities and Markets Authority will begin a digital innovation supervisory priority in 2027, initially focusing on supervised entities’ use of AI and tokenisation. Authorities will map client facing uses, build common supervisory approaches and conduct initial checks on selected firms. The initiative will operate alongside the continuing cyber and operational resilience priority as the ESG disclosures priority closes.
Central Bank of Iceland keeps countercyclical capital buffer at 2.5% as economic slowdown and cyber threats test resilience
The Central Bank of Iceland kept the countercyclical capital buffer at 2.5%, finding that strong banks and low private-sector indebtedness support financial stability. A cooling economy and housing market could increase pressure on construction companies, while AI-enabled cyberattacks require stronger defenses and coordinated incident preparedness. Offline payment card functionality has now been implemented to strengthen payment resilience.
European Supervisory Authorities identify external dependencies, cyber threats and private credit as key EU financial vulnerabilities
The European Supervisory Authorities identified non-EU dependencies, cyber and emerging technology threats, and private credit as key vulnerabilities, while assessing the EU financial system as resilient overall. They called for stronger crisis preparedness, monitoring and stress testing of external and private credit exposures, and early action on risks from artificial intelligence and quantum computing.
Danish Financial Supervisory Authority sets 2030 technology agenda for AI, quantum risks, tokenization and innovation
The Danish Financial Supervisory Authority has set a technology agenda through 2030 covering AI, quantum technology, tokenization and financial innovation. It will assess emerging risks, clarify existing requirements and consider expanding its FT Lab regulatory sandbox, with the aim of supporting innovation without adding unnecessary rules or weakening financial stability and customer protections.
Canadian Bankers Association urges risk based AI transparency under existing banking frameworks
The Canadian Bankers Association urged Canada to manage AI transparency through existing banking, privacy and supervisory frameworks rather than standalone rules. Disclosures and incident reporting should be risk based, limited to material harms or potentially misleading uses, and allocated according to each party’s knowledge and control. Prescriptive rules for AI agents would be premature, although banks should be able to verify an agent’s identity, authority and permissions.
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member presses Trump to seek China AI restrictions and exclude NVIDIA CEO from talks
U.S. Senate Banking Committee Ranking Member Elizabeth Warren urged President Donald Trump to exclude NVIDIA CEO Jensen Huang from upcoming talks with Chinese President Xi Jinping. She also called on Trump to seek Chinese restrictions on dangerous uses of advanced AI and said Huang will be called before Congress in 2027.
Financial Planning Standards Board announces 10th World Financial Planning Day and AI research release
The Financial Planning Standards Board will hold the 10th World Financial Planning Day on Oct. 7, 2026, with education and pro bono activities across 11 markets. It will also release global research on how consumers and financial planners use artificial intelligence, including the role of professional judgment and ethical responsibility.
Portuguese Insurance and Pension Funds Supervisory Authority reports stronger 2025 insurer earnings and solvency alongside pension fund growth
The Portuguese Insurance and Pension Funds Supervisory Authority reported a 14.3% rise in supervised insurers’ production, net profit of EUR 653 million and Solvency Capital Requirement coverage of 211% in 2025. Pension fund assets grew 2.9% to EUR 19.9 billion, while contributions rose 43.7% and defined benefit funding levels improved. Market volatility, catastrophe protection gaps and digital operational risks remain key concerns.
European Central Bank Banking Supervision calls for board oversight of bank digital strategies and stronger risk safeguards
European Central Bank Supervisory Board Chair Claudia Buch called for board oversight, multiyear investment and strong risk controls as banks expand their use of artificial intelligence, cloud services and tokenisation. Supervision will focus on common cyber, outsourcing and data vulnerabilities while holding banks accountable for automated decisions. Buch also backed integrated European markets and interoperable public infrastructure without weakening prudential standards.
European Central Bank assesses AI boom support for US equities and rising concentration risks
The European Central Bank finds that strong earnings expectations and compressed risk premia have supported US equities and limited their sensitivity to adverse shocks during the AI boom. Widening risk differentiation among technology companies and historically high market concentration increase the risk that weakness in a few large AI related stocks could trigger broader declines.
US Commodity Futures Trading Commission launches Frontier Forum Series on emerging financial technologies
The US Commodity Futures Trading Commission will hold public roundtables on emerging financial technologies and market structures. The first forum, focused on artificial intelligence and agentic finance, is scheduled for Oct. 28, 2026.
New York State Department of Financial Services sets November registration for frontier AI developers under RAISE Act
The New York State Department of Financial Services will begin directing large frontier AI developers to register in November 2026, ahead of RAISE Act compliance from January 2027. Covered developers must publish safety frameworks, report critical incidents within 72 hours and submit quarterly catastrophic-risk assessments to the new DIGIT office. Marc Gilman has been appointed deputy director for the law’s implementation.
Poland's Ministry of Finance backs EU windfall tax and outlines priorities for banking innovation and AI
Poland's Ministry of Finance backed an EU windfall tax on oil companies, with proceeds potentially used to reduce energy and fuel costs for vulnerable households and businesses. At an informal EU finance ministers' meeting, Poland also supported deeper banking integration, safeguards for cryptoasset risks and investment in domestic AI capabilities and public-sector applications.
International Monetary Fund Managing Director Kristalina Georgieva urges five policy priorities for Europe’s AI push and warns of market correction risks
International Monetary Fund Managing Director Kristalina Georgieva urged Europe to accelerate its AI strategy through deeper risk capital markets, energy integration, business flexibility, workforce support and digital public infrastructure. She warned that leverage, circular financing and global equity linkages could turn disappointment over AI earnings or investment into a broad market correction. AI could eventually lift global annual potential growth by 0.1 to 0.8 percentage points but affect up to 60% of jobs in advanced economies.