In addition to identifying vulnerabilities, the report prepared by the international body emphasises the importance of addressing data gaps and improving coordination.

Enhanced monitoring is essential not only for mitigating risks but also for enabling the financial sector to benefit from AI’s potential, according to a latest report by the Financial Stability Board (FSB), an international body that monitors the global financial system. These benefits include improved operational efficiency, better compliance with regulatory requirements, more sophisticated data analysis, and the development of tailored financial products, FSB said in the