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
Monetary Authority of Singapore commits SGD 220 million to renewed three-year financial technology scheme
The Monetary Authority of Singapore has committed SGD 220 million over three years to FSTI 4.0, supporting technology development and adoption, shared infrastructure and financial technology talent. The six-track scheme prioritizes AI and other frontier technologies, targets at least 1,000 internships and adds a scale-up grant for eligible competition finalists.
People’s Bank of China reviews cross-border payment expansion and calls for safeguards in AI agent payments
People’s Bank of China Deputy Governor Lu Lei reviewed progress in cross-border payment connectivity, including links with Hong Kong and the United Arab Emirates, a unified QR code gateway and a digital renminbi clearing platform. He urged payment providers to apply safeguards for AI agent payments, protect consumers and strengthen risk controls.
UK Financial Conduct Authority warns of AI protection misconceptions among young investors, with 44% believing AI-generated financial information is regulated
UK Financial Conduct Authority research found that four in five less experienced investors aged 18 to 40 had used AI for investment support. However, 44% mistakenly believed AI-generated financial information was regulated, while 32% wrongly expected compensation if AI advice went wrong. General-purpose AI chatbots are not regulated, and the FCA urged users to verify sources and exercise their own judgment.
Hong Kong Monetary Authority and fellow financial regulators select 36 agentic AI use cases for first GenAI Sandbox++ cohort
Hong Kong’s financial regulators have selected 36 agentic AI use cases involving 30 financial institutions and 27 technology partners for the first GenAI Sandbox++ cohort. Trials will cover end-to-end financial processes and AI-based oversight of other AI applications, with testing due to begin later in 2026.
Australian Prudential Regulation Authority and Australian Securities and Investments Commission publish frontier AI roundtable insights
The Australian Prudential Regulation Authority and Australian Securities and Investments Commission have published insights from industry roundtables on frontier AI risk. The regulators expect entities to act now as frontier AI amplifies cyber, technology and operational risks and may produce unintended outcomes through increasingly autonomous systems.
Brazil Securities Commission outlines rapid adoption of AI-based market supervision systems
Brazil Securities Commission Chair Otto Lobo outlined plans for the rapid adoption of AI-based market supervision systems. He also said the commission’s tokenization framework would remain technology-neutral while competing systems evolve.
European Central Bank survey finds workplace AI use has doubled to 52%, with uneven productivity gains
European Central Bank survey data show workplace AI use doubled from 26% in 2024 to 52% in 2026. Users report median savings of three hours a week, although the estimated economy-wide efficiency gain is about 3.8% and varies widely by task. Training gaps, limited employer support, reliability concerns and lack of interest continue to constrain adoption.
Australian Securities and Investments Commission sets 2026–27 priorities on consumer harm, AI oversight and regulatory burden
The Australian Securities and Investments Commission has set its 2026–27 priorities, combining stronger action on consumer harm and artificial intelligence risks with measures to reduce unnecessary regulatory burden. Its work will cover scams, debt collection, insurance intermediaries, buy now pay later, superannuation fee deductions and AI-related threats to consumers and markets.
South Korea Financial Services Commission proposes MyData expansion for sole proprietors, AI agent execution and wider data use
The South Korea Financial Services Commission proposed expanding MyData to sole proprietors and allowing AI agents to execute specified financial rights on users’ behalf. The plan would also broaden available data, ease controlled sharing and combination, and introduce AI recordkeeping and explanation duties. Legislative work is planned from the second half of 2026, with eligible services potentially piloted before enactment.
Bank of Japan survey finds generative AI adoption above 90% as risk management gaps persist
The Bank of Japan found that more than 90% of surveyed financial institutions are using or trialing generative AI, with use expanding into core operations involving customer information. Risk controls have improved, but governance, third-party oversight, safety, cybersecurity and data readiness require further work. The central bank will continue engaging institutions through examinations, monitoring and seminars.
Latin American Financial Action Task Force approves first regional proliferation financing risk assessment and updates fifth-round standards
The Latin American Financial Action Task Force approved the region’s first sectoral proliferation financing risk assessment and updated its fifth-round evaluation standards to incorporate humanitarian exceptions under United Nations Security Council resolutions. It also advanced mutual evaluations and adopted a regional program to assess AI and emerging-technology risks, with work continuing through 2027.
Danish Financial Supervisory Authority urges financial firms to strengthen defenses against AI-enabled cyberattacks
The Danish Financial Supervisory Authority has urged all financial firms to assess AI-enabled cyber threats and strengthen their cybersecurity and operational resilience proportionately. Firms should establish clear management accountability, improve vulnerability monitoring and patching, and test response and recovery plans against AI-driven attacks. The authority will analyze the sector’s AI use and related risks in the second half of 2026.
Central Bank of the Philippines reports regional approval of scam prevention, responsible AI and training initiatives
The Central Bank of the Philippines reported that Asia-Pacific central bank governors approved initiatives covering scam prevention, responsible AI and training for junior central bankers. The measures include an information-sharing task force to improve scam detection and work to help financial institutions manage AI risks.
Argentina Superintendency of Insurance outlines governance-led approach to artificial intelligence oversight
The Argentina Superintendency of Insurance outlined a governance-led approach to artificial intelligence oversight that supports innovation rather than prohibiting the technology. It emphasized testing, controls and decision traceability, alongside the protection of trust, ethics, transparency and solvency.
Monetary Authority of Singapore urges actuaries to strengthen AI governance, forward-looking stress testing and inclusive insurance
The Monetary Authority of Singapore urged actuaries to strengthen AI governance, forward-looking scenario analysis and stress testing as risks become more interconnected. It also called for affordable and accessible insurance products that respond to aging populations, disability, mental health needs and emerging climate technologies.
Australian Securities and Investments Commission warns of AI-enabled investment scams after 19,400 takedowns in FY26
ASIC warned that AI-generated endorsements and coordinated networks of fake online content are making investment scams harder to detect. It removed more than 19,400 scams in FY26, up 182%, while reported losses linked to impersonated public figures reached AUD 7.4 million. Consumers should independently verify licence details against ASIC’s registers rather than rely on online searches or advertisements.
Bermuda Monetary Authority consults on principles-based guidance for responsible AI use in financial services
The Bermuda Monetary Authority is consulting on guidance for applying existing regulatory obligations to artificial intelligence use in the regulated financial services sector. The principles-based framework would cover areas including governance, risk management, transparency, cybersecurity and operational resilience, without creating new requirements or a separate licensing regime. Comments are due by Oct. 30, 2026.
Bank Indonesia calls for BRICS cooperation on local currencies, cross-border payments and AI capacity
Bank Indonesia urged BRICS members to deepen cooperation on local currency use, cross-border payments and domestic artificial intelligence capacity. It also backed digital public infrastructure, greater climate finance access for developing countries and a stronger role for those countries in global economic governance.
Bermuda Monetary Authority consults on proportionate AI guidance
The Bermuda Monetary Authority is consulting on proportionate guidance for applying existing regulatory requirements to AI use across regulated financial services. The framework would cover traditional, generative and agentic AI without creating new obligations or a separate approval regime, while keeping regulated entities accountable for third-party and group-provided systems. Comments are due by Oct. 30, 2026.
National Association of Insurance Commissioners president outlines AI oversight, private credit and catastrophe risk priorities
National Association of Insurance Commissioners President Scott White outlined ongoing reforms covering AI, private credit and catastrophe risk. Work includes a 12-state pilot of an AI Risk Evaluation Supplement, stronger oversight of third-party data and model vendors, and enhanced scrutiny of insurers’ investment portfolios. The NAIC is also expanding data and analytical tools for homeowners insurance markets.
Germany’s Federal Ministry of Finance announces Cabinet approval of customs overhaul with AI powers and administrative asset seizure
Germany’s Federal Cabinet approved a customs overhaul that expands powers against financial and organized crime while restructuring and digitizing the nearly 49,000-employee service. The measures include AI-supported analysis, cryptoasset seizure and administrative seizure of assets suspected of unlawful origin, subject to fiscal court approval for confiscation. They also strengthen sanctions enforcement, data sharing and the Financial Intelligence Unit’s role.
South Korea Financial Services Commission opens applications for 15 places in second-half D-Testbed program
The South Korea Financial Services Commission is seeking 15 teams for the second-half 2026 D-Testbed, offering 12 weeks of access to real data, remote analytics and expert support. Five artificial intelligence-track teams will also receive high-performance computing resources, and applications close Sept. 8.
Bank of Italy reports 49 technical cooperation activities involving more than 750 experts from 61 central banks
The Bank of Italy reported that more than 750 experts from 61 central banks joined 49 technical cooperation activities in the first half of 2026. Topics included artificial intelligence, supervisory technology, operational resilience, the digital euro, payments and market infrastructures.
New Zealand Financial Markets Authority launches thematic review of artificial intelligence in financial advice
The New Zealand Financial Markets Authority has launched an exploratory review of artificial intelligence use across the financial advice sector, focusing on adoption, governance, risks and regulatory questions. Four stakeholder surveys are open until Sept. 4, 2026. Findings may inform future guidance, supervisory priorities or policy work.
Thailand Office of Insurance Commission sets 2027 priorities for proactive, risk-based insurance supervision
The Thailand Office of Insurance Commission set its fiscal 2027 organizational priorities, emphasizing measurable outcomes and proactive, risk-based supervision. Priorities include insurance access, the protection gap, product governance, open insurance and greater use of digital technology and artificial intelligence.