Artificial intelligence and systemic risk

In this report, we discuss the implications of the rapid development and widespread adoption of artificial intelligence (AI) for financial stability. Sizeable corporate investments have made advanced AI capabilities like large language models (LLMs) such as ChatGPT, Claude and Gemini widely accessible. Some currently boast 800 million weekly active users. This proliferation of easy-to-use tools is leading to the rapid integration of AI into corporate processes, though there is little consensus on how to do so effectively. Our report emphasises that while AI offers substantial benefits, including accelerated scientific progress, improved economic growth, better decision making and risk management and enhanced healthcare, it also generates significant concerns regarding risks to the financial system and society. AI's ability to process immense quantities of unstructured data and interact naturally with users allows it to complement and substitute human tasks, potentially revolutionising how work is organised. However, this comes with risks such as difficulty in detecting AI errors, inherited biases, overreliance and challenges in oversight