Conduct
Young investors misunderstand AI tool regulation and compensation scope; 38% make investment decisions solely on AI outputs.
high
FCA
Systemic
Uncontrolled AI race within industry driven by competitive dynamics and advancing capabilities.
high
Systemic
Existential risk from uncontrolled AI development cited by leading AI researcher.
high
Systemic
Advanced AI capabilities without adequate safety features pose existential risk.
high
Data privacy & security
Ambient speech transcription and summarization on always-listening devices raises consent and privacy risks.
medium
Conduct
ChatGPT-based insurance sales bypass broker guidance and regulatory oversight of advice.
medium
Systemic
AI development framed as existential threat requiring international coordination.
high
Systemic
Cyber insurance underpricing amid AI-driven attack acceleration creates unquantified systemic exposure.
high
Reputational
OpenAI system used in unauthorized compromise of external platform, raising trust concerns.
medium
Model risk
73% know AI can be inaccurate; general-purpose chatbots lack FCA oversight despite widespread investment use.
medium
FCA
Systemic
Concerns over AI-directed cyberattacks and frontier model capabilities posing cross-border risks.
high
Other