Annual Economic Report 2026
The Bank for International Settlements (BIS) has released its Annual Economic Report 2026, warning that economic progress faces rising perils and that disciplined policy responses across all fronts are now essential. The report identifies four pressure points of direct relevance for banking supervisors. First, inflation risks: in a world of more frequent negative supply shocks […]
Sound Practices for Responsible Adoption of Artificial Intelligence (AI) – Consultation Report
As artificial intelligence reshapes financial services — from credit risk assessment and fraud prevention to customer service and trading — the question is no longer whether to adopt it, but how to do so responsibly. The Financial Stability Board (FSB) has released a consultation report proposing 12 sound practices for financial institutions of all types […]
In data we trust? Emerging policy and supervisory approaches to AI data use in financial services
FSI Insights No 73 Data play a critical role in the transformation of the financial sector through artificial intelligence (AI). While challenges in data management are not new, they pose significant barriers to the wider adoption of advanced AI systems, such as generative AI (gen AI). Key concerns include data privacy, quality and security, which […]
Global giants in the AI supply chain
BIS Bulletin No 122 Globally, the largest artificial intelligence (AI) firms are based in the United States, China, Chinese Taipei, Korea and the Netherlands. These global AI giants account for an increasing share of total market capitalisation, capital expenditure and revenues in their respective jurisdictions. For many AI giants – and particularly those from the […]
Supervision of artificial intelligence in finance: Challenges, policies and practices
While OECD Member countries have appropriate regulations for the use of AI in finance, challenges may arise in the interpretation and implementation of applicable AI regulations by financial supervisors. This paper analyses current supervisory approaches to the use of AI in finance and challenges in overseeing its adoption. The paper also reviews supervisory practices that […]
2025 Annual Survey Report on AI Use in Financial Services
The IIF–EY Annual Survey on AI Use in Financial Services highlights how AI has become central to global investment, development, and competitiveness. New agentic and open-source AI models, along with Generative AI and Large Language Models, are advancing the technology’s capabilities. In 2024, public policy shifted from emphasizing AI safety and control to promoting investment, […]
Managing explanations: how regulators can address AI explainability
FSI Occasional Papers No 24 The growing use of AI in finance is reshaping operations, risk management, and customer services, but limited explainability of complex models (like deep learning and LLMs) poses serious challenges for institutions and regulators. Explainability is vital for transparency, accountability, compliance, and trust, yet current techniques are often unreliable. Most existing […]