Australian Regulator APRA Warns Banks on Ungoverned AI Risks, Demands Step-Change

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The Australian Prudential Regulation Authority (APRA) called for a 'step-change' in how banks, insurers, and superannuation trustees manage AI-related risks as adoption accelerates. APRA warned that ungoverned AI deployment poses systemic risks to the financial sector. This follows similar warnings from UK regulators, suggesting a coordinated global regulatory tightening around AI in financial services.