Financial regulators in two countries have put artificial intelligence near the top of their list of threats to the financial system this week.
The US Federal Reserve’s November Financial Stability Report says AI was the most frequently cited risk in its autumn survey of 23 contacts at broker-dealers, banks, investment funds and advisory firms. Respondents pointed to three concerns: share prices that could fall if AI earnings disappoint, cyberattacks by sophisticated state actors, and “complex forms of AI-related financing” for data centres. Mentions of AI rose more than any other risk compared with the spring survey.
A day earlier, the Australian Prudential Regulation Authority (APRA) warned in its System Risk Outlook that AI “is increasing the speed and scale at which software vulnerabilities can be identified and exploited”, leaving banks less time to patch. APRA’s 2027 System Stress Test will model how AI could hit banks, superannuation funds and life insurers, including rapid AI adoption disrupting business models and a sharp fall in AI-related asset values.
Why it matters: neither step creates new rules, but stress tests shape how much capital and contingency planning the institutions holding people’s savings must keep. The Fed’s survey is small, so it signals concern rather than measuring it. The full Fed report is here.
Sources: Federal Reserve, Financial Stability Report, November 2026; APRA, System Risk Outlook, 12 November 2026