The UK’s financial regulator has warned that the rapid pace of AI development is revealing vulnerabilities in firms’ cybersecurity arrangements because their existing controls cannot keep up with the risks new technology can either create or exploit.
In its review, the Financial Conduct Authority (FCA) said that “frontier” AI models—meaning the most advanced AI technologies available at the time—can help firms identify and analyze their cyber vulnerabilities more quickly, “but if used maliciously, amplify cyber threats to firms’ safety and soundness, customers, market integrity, and financial stability.”
