APRA to stress-test banks and super funds over AI risks as reliance on overseas suppliers exposed

Detailed summary

Australia’s biggest banks and super funds face a landmark AI stress test as APRA exposes their reliance on overseas suppliers and warns global uncertainty is running at over three…

Australia’s biggest banks and super funds will face an artificial intelligence stress test next year as the financial watchdog prepares for a technology shake-up that could wipe billions from global share markets. The Australian Prudential Regulation Authority will test how financial institutions could withstand a collapse in AI-related investments or rapid technological advances that threaten established businesses. APRA has also revealed some individual outside suppliers serve financial institutions collectively holding more than half the $10.6 trillion in assets it oversees.

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