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UK Lawmakers Urge AI Stress Tests for Financial Stability

UK Lawmakers Urge AI Stress Tests for Financial Stability

Author:

Global Cryptocurrency

Published:

2026-01-20 06:15:01

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BTCCSquare news:

UK lawmakers are pushing financial regulators to implement stress tests for artificial intelligence systems, warning that delays could jeopardize market stability. The Treasury Select Committee's report criticizes the Bank of England and Financial Conduct Authority for their "wait-and-see" approach despite widespread AI adoption in London's financial sector.

Rapid AI integration in trading, risk assessment, and loan approvals creates systemic vulnerabilities. Flaws in interconnected systems could trigger cascading failures before regulators respond. The committee emphasizes that private sector innovation is outpacing oversight frameworks, leaving dangerous gaps in risk management.

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