# FSB AI financial stability report (Nov 2024): The Financial Stability Implications of Artificial Intelligence Source: https://www.bankingnewsai.com/ai-regulation/documents/fsb-financial-stability-implications-of-ai-2024 Last updated: Aug 26, 2026 On 14 November 2024 the FSB published its post-generative-AI assessment of AI's financial-stability implications. It identifies six vulnerabilities: third-party dependencies and provider concentration, market correlations, cyber risks, model risk and data quality and governance, AI-enabled fraud and disinformation, and misaligned AI systems. It asks authorities to close information gaps for monitoring, assess whether existing policy frameworks are adequate, and strengthen supervisory capabilities including with AI tools. ## At a glance | Field | Value | | --- | --- | | Authority | [FSB](https://www.bankingnewsai.com/ai-regulation/fsb) | | Type | Report | | Status | Final | | Published | Nov 14, 2024 | | Applies to | FSB member authorities and standard-setting bodies; describes risks arising from banks' and other financial institutions' AI use | | Official text | https://www.fsb.org/2024/11/the-financial-stability-implications-of-artificial-intelligence/ | ## Key points - Six vulnerabilities: third-party dependencies/concentration; market correlations from similar models and data; cyber risk; model risk, data quality and governance; fraud and disinformation amplified by GenAI; misaligned AI systems operating outside legal boundaries. - Concludes existing frameworks address many AI risks but may need reinforcement as adoption grows. - Three recommendations to authorities: address data and information gaps for monitoring; assess adequacy of current policy frameworks; enhance regulatory and supervisory capabilities, including via suptech. - Notes reliance on a small number of hardware, cloud and model providers as a source of systemic vulnerability. - Basis for the FSB's October 2025 monitoring report and June 2026 sound practices. ## What changed for banks It reframed AI from an efficiency topic (2017) into a financial-stability workstream, giving supervisors a common vulnerability taxonomy that subsequent FSB monitoring indicators and sound practices are built on. ## Use cases it governs - [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) - [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) - [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity) - [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) - [Trading & capital markets](https://www.bankingnewsai.com/ai-regulation/by-use-case#trading-markets) - [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) - [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) ## FAQ ### What vulnerabilities does the FSB's 2024 AI report identify? Third-party concentration, market correlation, cyber risk, model risk/data governance, AI-enabled fraud and disinformation, and misaligned AI systems. ### Does the FSB 2024 AI report require anything of banks? No. Its recommendations are addressed to authorities: monitor AI adoption, assess policy frameworks, and build supervisory capacity. ## Related documents - [FSB Chair's letter to G20 (Aug 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-chair-letter-g20-august-2026) — FSB Chair's letter to G20 Finance Ministers and Central Bank Governors: August 2026 — risks arising from frontier artificial intelligence models (Aug 31, 2026) - [Responses to FSB AI sound practices consultation (Aug 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-sound-practices-consultation-responses-2026) — Public responses to consultation on Sound Practices for Responsible Adoption of Artificial Intelligence (AI) (Aug 6, 2026) - [Bowman remarks at FSB AI outreach (July 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-bowman-remarks-ai-sound-practices-2026) — Opening remarks on sound practices for artificial intelligence (FSB virtual outreach event) (Jul 7, 2026) - [FSB AI sound practices consultation (June 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-sound-practices-consultation-2026) — Sound Practices for Responsible Adoption of Artificial Intelligence (AI): Consultation report (Jun 10, 2026) - [FSB AI monitoring report (Oct 2025)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-monitoring-ai-adoption-vulnerabilities-2025) — Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector (Oct 10, 2025) - [FSB next steps on AI monitoring (Oct 2025)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-next-steps-authorities-ai-monitoring-2025) — FSB outlines next steps for authorities on AI monitoring (Oct 10, 2025) - [FSB third-party risk toolkit (2023)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-third-party-risk-toolkit-2023) — Final Report on Enhancing Third-party Risk Management and Oversight: A toolkit for financial institutions and financial authorities (Dec 4, 2023) - [FSB 2017 AI/ML report](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-ml-financial-services-2017) — Artificial intelligence and machine learning in financial services: Market developments and financial stability implications (Nov 1, 2017) Last reviewed Aug 26, 2026. Cite the official text (https://www.fsb.org/2024/11/the-financial-stability-implications-of-artificial-intelligence/) for the rule and this page for the summary and dates. --- Canonical page: https://www.bankingnewsai.com/ai-regulation/documents/fsb-financial-stability-implications-of-ai-2024 Part of [BankingNewsAI](https://www.bankingnewsai.com/) — a free daily brief on AI in banking, an AI regulation tracker (41 authorities, 237 documents) and AI-strategy profiles of the 120 largest US banks. Markdown versions of every reference page: append `.md` to the page URL; index at https://www.bankingnewsai.com/llms.txt.