AI poses financial stability risks, says RBNZ report
Market concentration among potential sources of instability, research finds
Artificial intelligence poses risks to financial stability, a report by the Reserve Bank of New Zealand argues.
The report, published on May 5, argues that AI is beginning to have a significant impact on the financial system. It points to potential benefits such as more resilient risk management, greater productivity, innovation and personalised customer offerings.
However, the author, senior analyst Matthew Hankin, says AI may also generate harmful errors, data privacy issues, market distortions
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