Regulatory agency issues warning: AI exacerbates systemic threat of major tech companies to EU banks.

The highest financial regulatory authority in the Netherlands has warned that the application of artificial intelligence will lead to European banks becoming more reliant on foreign technology giants, exposing them to greater systemic threats, and called for swift action to mitigate risks. According to Steven Maijoor, chairman of the Dutch central bank's supervisory board, the EU should create its own alternatives to reduce the potential risks to European banks' competitiveness, such as service disruption or significant price increases. The report from DNB highlights that short-term financial stability risks can be mitigated through scenario planning, sharing threat information, and protecting encryption keys.