Central bankers warn about risks from agentic AI in finance

Central bankers and regulators are raising concerns about the growing use of agentic AI in financial services. UK watchdog chief Nikhil Rathi said supervisors may need new tools and a more collaborative approach to the AI market.

Central bankers warn about risks from agentic AI in finance

What happened?

Central bankers and regulators are raising concerns about the growing use of agentic AI in financial services. UK watchdog chief Nikhil Rathi said supervisors may need new tools and a more collaborative approach to the AI market.

Why it matters

Central bankers and financial regulators are warning that agentic AI could create new risks for the financial system as the technology spreads across markets and institutions. In remarks cited by Cointelegraph, Nikhil Rathi, chief executive of the UK’s finance watchdog, said regulators need to think about “new tools and a different way of working with the [AI] market in a more collaborative way.”

Central bankers and financial regulators are warning that agentic AI could create new risks for the financial system as the technology spreads across markets and institutions. In remarks cited by Cointelegraph, Nikhil Rathi, chief executive of the UK’s finance watchdog, said regulators need to think about “new tools and a different way of working with the [AI] market in a more collaborative way.”

The comments matter because agentic AI systems can make decisions and act with less direct human input than traditional software, which raises questions about oversight, accountability, and operational risk. For markets and companies using AI in trading, compliance, customer service, or other financial functions, the message signals that regulators are paying closer attention to how these systems behave in practice.

The discussion also reflects a broader concern among policymakers that financial oversight may need to adapt as AI becomes more autonomous. Rather than relying only on existing rules, regulators are considering whether new tools or supervisory methods are needed to keep pace with rapidly changing AI applications.

For the crypto sector, which already relies heavily on automation, algorithmic systems, and fast-moving digital infrastructure, the debate is especially relevant. Any shift in how authorities monitor AI-driven finance could influence firms that use AI in trading, risk management, or compliance across both traditional and digital asset markets.

Source: Cointelegraph

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