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The rapid acceleration of artificial intelligence adoption in financial services presents a risk to financial stability, the Reserve Bank of New Zealand said in a report on Monday. “Errors in AI systems, data privacy concerns and market distortions could amplify existing risks,” the report said.
“The growing reliance on a small number of third-party AI providers may also contribute to market concentration, creating new channels for contagion and increasing the potential impact of cyber-attacks.”
However, it added that AI tools and models were also…
