BOJ's Ueda warns AI could bring new financial stability risks

BOJ's Ueda warns AI could bring new financial stability risks

The Star Online - Tech·2024-11-21 14:00

TOKYO (Reuters) -Bank of Japan Governor Kazuo Ueda said on Thursday central banks must be mindful that technological advances, such as in the area of artificial intelligence (AI), could bring new risks to financial stability.

The growing use of online banking and social media has heightened the risk that concern over a bank's credit status could spread rapidly and trigger a rush of deposit withdrawals, Ueda said.

The rise of generative AI also brings specific challenges such as data protection concerns, he added.

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