A recent study has raised significant concerns about the ability of central banks and financial regulators to effectively monitor the risks associated with advanced artificial intelligence systems, such as Anthropic’s Mythos. The research reveals that financial institutions are embracing AI at more than twice the pace of their regulatory counterparts, with only 20% of regulators reporting advanced AI usage. This discrepancy highlights a troubling data gap that could undermine effective governance in the rapidly evolving financial landscape.
Disparity Between Regulators and Financial Firms
The findings, published by the Cambridge Centre for Alternative Finance in collaboration with the Bank for International Settlements and the International Monetary Fund, illustrate a stark divide in AI adoption rates. Only 24% of regulatory authorities collect data on the integration of AI within the financial sector, while a concerning 43% have no plans to initiate data collection in the next two years. The report warns that this lack of empirical evidence could jeopardise the optimistic outlook surrounding AI technologies.
“This empirical blind spot may undermine the prevailing optimism on AI,” the report notes. “Authorities cannot successfully harness or oversee AI if they are navigating its adoption and risks without hard data.”
The comprehensive study surveyed 350 traditional financial institutions and fintechs, over 140 AI companies, and 130 central banks and financial authorities across 151 countries, revealing a pressing need for regulators to catch up.
Evolving Risks in the Financial Sector
As AI technologies proliferate within the financial sector, global regulatory bodies have intensified their caution about the potential risks. Earlier this month, Anthropic launched Mythos, which cybersecurity experts warn could present formidable challenges to the banking industry and its aging technological infrastructure.
Regulators around the world are examining how prepared banks are to integrate these advanced AI systems, which may be capable of exploiting software vulnerabilities on a large scale. Such developments could significantly compromise existing human governance and oversight mechanisms.
“Regulators generally maintain the principle that financial firms should remain accountable for harms, including cyberattacks, whether AI is built in-house or supplied by third parties,” the authors of the report explained. “However, that position becomes harder to apply in the context of more autonomous systems managed by third-party vendors.”
The Need for Proactive Regulation
The report stresses that regulators themselves must adopt agentic AI capabilities—technologies that can operate independently without human intervention—to effectively oversee the systems they regulate. Harish Natarajan, practice manager for competitiveness and innovation at the World Bank, indicated that authorities in emerging markets often lack the necessary data and expertise to implement AI effectively.
Moreover, the report highlights an alarming concentration risk within the financial sector, as a significant majority of respondents rely heavily on a limited number of dominant AI providers. Specifically, 69% of all surveyed entities use OpenAI’s models, increasing to 76% within the financial industry. This reliance raises critical concerns regarding potential vulnerabilities in the global financial system due to disruptions in service or price fluctuations.
At the time of the survey, conducted between October 2025 and January 2026, just over half of the respondents were utilising Google’s AI models, while slightly more than a third were using Anthropic’s technology.
Why it Matters
The findings from this report underscore a crucial need for regulatory bodies to enhance their capabilities and adapt to the fast-paced advancements in AI. As financial institutions continue to innovate and integrate AI technologies, the ability of regulators to effectively monitor these developments is essential to safeguarding the stability and integrity of the financial system. Without proactive measures to bridge the gap in AI adoption and oversight, the risks associated with emerging technologies could outstrip the capacity of regulators to manage them. The implications of this disparity could have far-reaching consequences for financial stability, cybersecurity, and consumer protection in a digital age.
