When it comes to paradigm-shifting technology, the earliest adopters are almost always illicit — fraudsters and scammers, illegal gambling, pornography — with regulators lagging far behind as consumers pay the price, willingly or not.
Just into its second year as a phenomenon, there is no doubt generative AI will be massively disruptive, while regulators and government will struggle to keep pace and financial services will be a focal point.
You could cut and paste the results of this Bank for International Settlements research into just about any official statement: "Experts foresee that AI tools will improve cyber threat detection and reduce response time to cyber attacks. Yet gen AI also increases the risks of social engineering attacks and unauthorised data disclosure."
Private enterprise as a rule can move much more quickly, in part because of the commercial opportunity of getting it right — witness Monty Python’s Harold the clever sheep — but also because of the costs of fraud.
