Regulator Highlights AI Risks to Canada's Financial System
MT newswire2026/10/08 16:2612:26 PM EDT, 10/08/2026 (MT Newswires) -- Canada's financial regulator warned that rapid advances in frontier artificial intelligence (AI) could heighten cyber, technology, third-party and reputational risks across the financial system. The Office of the Superintendent of Financial Institutions (OSFI) said Thursday in its 2026 Semi-Annual Risk Outlook that geopolitical uncertainty and economic shifts have increased risks since its annual outlook in April. OSFI said AI could boost productivity and risk management but urged stronger governance, controls and testing as capabilities advance, with boards and senior management accountable for the associated risks. The regulator added that Canada's financial system remains resilient, backed by strong capital and liquidity buffers and robust governance and risk management. "Financial institutions that harness AI responsibly while managing cyber, technology, and third-party risks will position themselves to thrive in a complex environment," said Peter Routledge, superintendent of Financial Institutions, in a statement. On Oct. 2, Canadian Prime Minister Mark Carney launched a new council to give advice on the country's AI transformation.
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