Banks, super funds to face landmark AI stress test

Detailed summary

APRA boss John Lonsdale said major institutions were “not where they needed to be” on artificial intelligence-based threats.

The country’s largest banks, pension funds and insurers will be stress-tested for their resilience to artificial intelligence-driven threats, as well as extreme market volatility, with the prudential regulator warning many firms are ill-prepared for the growing risks posed by AI.

The first-of-its-kind test, to be conducted by the Australian Prudential Regulation Authority next year, will examine how the financial system responds to potential AI-led disruption.

Opening of the article, excerpted from Australian Financial Review. To read the rest, open the article on the publisher's site.