Global Regulators Intensify Scrutiny of AI Risks and Safety, US and EU Eyeing Controls

Key Intelligence

• ■European financial watchdogs (ESRB, ECB) are issuing warnings and demanding plans from banks to mitigate cybersecurity and financial risks posed by advanced AI models.
• ■The UK's financial regulator has published a review and plans to regulate AI models providing financial advice, highlighting concerns over their widespread use.
• ■Illinois has enacted a landmark "Frontier Model Safety Law," holding AI companies accountable for mitigating risks from powerful AI, setting a precedent for state-level regulation.
• ■Globally, there's growing consensus among think tanks and regulators about the societal risks of AI and the industry's current shortcomings in ensuring adequate safety measures.
• ■The EU is exploring independent AI testing capacity and contingency plans, partly in response to US restrictions on certain AI models, indicating a move towards robust oversight.