Artificial intelligence and financial stability

• Robert Schuman Centre for Advanced Studies
• FBF: Florence School of Banking and Finance

A high-level seminar on how AI affects financial stability and what this means for regulation

While artificial intelligence offers substantial benefits, including accelerated scientific progress, improved economic growth, better decision-making and risk management, and enhanced healthcare, it also raises significant concerns about risks to the financial system and society. A recent ESRB report examines how AI might amplify or alter existing systemic risks in finance, or create new ones.

This seminar will discuss the impact of AI on financial stability and the necessary regulatory and supervisory responses.

In particular, it will address the following questions:

• How might AI amplify or alter existing sources of systemic risk?
• Does it create new systemic risks that require new macroprudential tools to address vulnerabilities?
• In what ways might AI aid risk identification, mitigation, and management?

Two of the report’s authors, together with a discussant, will explore these issues.

Speakers:

• Stephen Cecchetti | Economist
• Robin Lumsdaine | Professor of International Finance at American University

Discussant:

• Iñaki Aldasoro | BIS

Chair:

• Daria Vernon De Mars | European University Institute