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The growing use of artificial intelligence (AI) poses difficult challenges for the financial authorities. AI allows private-sector firms to optimise against existing regulatory frameworks, helps those who want to damage the financial system, amplifies wrong-way risk and speeds up financial crises. It also gives the authorities new tools for executing their mandate. The authorities could become more effective stewards of the financial system by gaining expertise in AI, setting up AI-to-AI links, developing triggered facilities and incorporating AI into their monitoring frameworks.
