BIS flags AI spending boom as growing threat to global financial stability
• The Bank for International Settlements (BIS) has warned that while AI supports global growth, the massive trillion-dollar spending on infrastructure and opaque financing could pose a systemic risk to financial stability. • Key concerns highlighted by the BIS include rising debt levels and the potential for financial instability stemming from the rapid, high-cost expansion of AI technologies. • In response to operational risks, the Reserve Bank of India (RBI) has mandated that banks and regulated entities conduct board-approved gap assessments on AI-related cybersecurity threats.
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