IMF CALLS FOR STRONGER AI RULES TO MANAGE FINANCIAL SECTOR RISKS

The International Monetary Fund (IMF) has called for stronger oversight of artificial intelligence (AI) systems in the financial sector, warning that rapid adoption of the technology could create new risks if not properly managed.

The global lender said financial institutions are increasingly using AI for areas such as fraud detection, risk assessment, customer service, and investment decisions. However, it noted that issues including data security, algorithmic bias, and system failures could pose challenges to financial stability.

The IMF urged regulators and industry players to develop clear frameworks that promote responsible AI use while protecting consumers and maintaining trust in financial systems.

Financial experts said effective AI governance will be critical as banks and fintech companies continue integrating advanced technologies into their operations. They added that regulators must balance innovation with measures that reduce potential risks.

The IMF emphasized that collaboration among governments, financial institutions, and technology providers will be necessary to ensure AI contributes positively to the financial sector while limiting possible disruptions.