MNI BRIEF: Macropru Policy To Evolve As AI Grows - Lagarde
MNI (LONDON) - Macroprudential policy must evolve to meet the new frontiers of financial system risk that disruptive technologies such as generative AI and quantum computing can pose for the financial system, ECB president Lagarde said in a speech on Thursday.
"We see this tension between opportunity and risk [from these technologies] playing", Lagarde said, noting that advances in quantum computing "may pose a serious threat to our encryption based financial system" and extensive uptake of AI could increase the potential for herding behavior.
As a result she called on European lawmakers to facilitate the removal of barriers to save data sharing between the ESRB and European supervisory authorities as a "crucial step to enables to use data to our full potential"