ECB's Lagarde Warns AI Could Amplify Financial Stability Risks

ECB President Christine Lagarde warned that AI could amplify market shocks, increase cyber vulnerabilities, and create systemic risks, speaking at the ESRB conference in Frankfurt. She made no monetary policy comments, so the statement is a cautionary note rather than a policy signal. The warning highlights growing regulatory focus on AI's financial stability implications, but no concrete actions were announced.