IMF Warns AI Could Amplify Financial Risks

The International Monetary Fund (IMF) has warned that artificial intelligence (AI) could make financial risks worse.

AI is being used more in trading, lending, and market supervision.

While AI can help with things like fraud detection, it can also cause problems like synchronized trading and market swings.

The IMF says regulators need to keep a closer eye on how financial institutions use AI.

They also warn about the risks of relying too much on a few big tech providers.

Central banks are already using AI to improve market surveillance.

The IMF advises that AI should help, not replace, human judgment.

They also warn about cyberattacks becoming more sophisticated.

Policymakers need to work together to make sure AI helps, not hurts, global financial stability.