Global finance leaders warned that AI poses systemic risk to markets
“Rising leverage is a feature of a maturing financial cycle,” Bailey wrote. “While it can reinforce rising markets, it can also intensify declines.”
Advisors are already fielding questions about pre-IPO AI exposure and the risks of buying into high-profile listings at inflated valuations. The FSB’s letter adds a macro-prudential dimension to those conversations, that the risk is not just at the portfolio level, but potentially systemic.
FINRA puts US broker-dealers on notice
In its 2026 Annual Regulatory Oversight Report, the Financial Industry Regulatory Authority made clear that the proliferation of generative AI tools across broker-dealer operations raises firms’ compliance obligations.
FINRA flagged concerns about data quality, model bias, and the governance of AI-generated client communications, requiring that firms treat AI-enabled interactions with the same supervisory rigor as any other client-facing activity.
The report, published in January 2026, explicitly warns against reliance on limited or outdated datasets, which can produce skewed outputs in client-facing tools, a particular concern in an environment where AI is rapidly reshaping how advisors work with clients and how they communicate investment recommendations.
