AI could cause financial crash, IMF warns

The International Monetary Fund has warned that new artificial intelligence models may trigger a “systemic” shock to the global financial system. The Fund says financial institutions must prepare now for what it calls the “inevitable” risk of AI-powered cyberattacks. These breaches could overwhelm defenses at banks and other lenders, potentially spreading instability across entire markets. The IMF urges regulators to update rules and require companies to test their AI security measures before it is too late.