IMF Warns of 'Elevated' AI Risk to World Financial System
The fund said weaker AI investments could spur a correction, while improving capabilities may increase cyberattacks on critical financial infrastructure.
- The International Monetary Fund released its Global Financial Stability Report in Bangkok, warning of "elevated" risks to the financial system, including potential AI-related market corrections and cyber threats.
- While AI-related growth boosts the economy, the Fund warned that "weaker or less durable AI investments" could trigger market corrections as economic gains may prove smaller than expected.
- Athanasios Vamvakidis, deputy director of the IMF's Capital Markets Department, told reporters that cyber threats are "known and very much unknown," with rapid digitisation increasing the attack surface.
- Another growing risk involves a spike in bond yields, which could trigger severe shocks due to the "foundational importance of sovereign bond markets" and energy-driven inflation pressures.
- "The policy priority should be to strengthen resilience before new shocks hit the economy," Vamvakidis said, as cyber incidents could undermine confidence in critical financial infrastructure.
19 Articles
19 Articles
IMF cites AI slowdown, spiking yields as looming global market risks - Regional Media News
By Pete Schroeder Oct 13 (Reuters) - The International Monetary Fund warned on Tuesday against "complacency" in global financial markets, citing risks from an artificial intelligence-driven selloff, rising government bond yields, or cyberattacks as potential threats facing still- resilient markets. The body cautioned in its [...]
Bangkok/Washington, 13 Oct.- The International Monetary Fund (IMF) warned that the combination of a possible correction in values related to the artificial intelligence boom (AI), the high cost of the treasury bonds of major economies and the risk of cyberattacks can become "systemic risk" with serious economic effects.In [...] The entry The IMF warns of the risk of correction in AI values, debt costs and cyberattacks was first published in Hola…
High government debt and refinancing needs put pressure on fixed-income markets, while banks face new solvency risks
Coverage Details
Bias Distribution
- 43% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
