Banking watchdogs are reportedly ramping up efforts to control increasing risks from artificial intelligence (AI).

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This heightened oversight is being driven in part by the threat of cyberattacks on banks or rogue AI agents hindering financial stability, Reuters reported Tuesday (Oct. 13), citing sources familiar with the matter.

Those sources say this scrutiny is a sign of increasing recognition that AI advances could mean greater investment in cyber recovery, more focus on dependency on outside tech providers, and more formal guidance from regulators in some jurisdictions.

Three of the top U.S. regulators, the Federal Reserve included, are questioning banks about their use of advanced AI models, adding to earlier scrutiny, two of the sources told Reuters.

These queries involve whether the banks use technology developed in China, if they use AI agents for cybersecurity, and if they can rein in autonomous systems, sources said.

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Meanwhile, the Bank of England and the European Central Bank are imploring banks to strengthen recovery plans, worried that rapid AI advances could bring disruption to financial markets earlier than thought, three of the sources added.

As Reuters notes, the debate around AI oversight has been ramping up following warnings from the industry about security concerns. P. -focused industry group to tackle AI risks.

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