EBA, EIOPA and ESMA call for e... Note

EBA, EIOPA and ESMA call for enhanced governance and consistent supervision to mitigate ICT risks from frontier AI models in the EU financial sector

The European Supervisory Authorities (EBA, EIOPA, and ESMA) have issued a statement advocating for a unified supervisory approach to address ICT risks posed by advanced AI models. This statement acknowledges existing regulations and recommendations from various European bodies concerning cybersecurity and AI. It proposes measures to enhance the operational resilience of financial entities against these new cyber threats. The focus is on proactive prevention, detection, and effective management of risks associated with frontier AI. Robust governance and risk management frameworks are deemed essential for financial entities to handle these AI-related cyber risks. The statement also highlights ongoing and planned oversight activities for critical ICT third-party providers under DORA. Financial entities and authorities are encouraged to use this statement to foster supervisory dialogue. This collaborative effort aims to bolster the resilience of the EU's financial system. The ultimate goal is to safeguard against potential risks arising from frontier AI technologies.