Banking watchdogs on both sides of the Atlantic are quietly stepping up scrutiny of lenders' use of artificial intelligence amid fears that fast‑moving systems could be hijacked or misfire in ways that threaten customer access and wider financial stability, according to six people familiar with the matter.
Reuters reported earlier this year that US bank regulators were already probing AI use at financial firms. The latest details are being reported for the first time. They suggest regulators may need costly cyber‑recovery investment, closer attention to outside technology providers and, in some places, more formal guidance.
