ECB Steps Up Scrutiny of European Banks’ AI Industry Exposure

The European Central Bank is delving into the risks faced by banks in the region from the artificial intelligence industry, amid heightened concern over hidden credit exposures and financial-sector disruption.

The Frankfurt-based central bank is asking a small number of individual lenders for more details on their lending to areas including data centers, people familiar with the effort told Bloomberg.

In parallel, the regulator is running targeted workshops to identify how banks are using generative AI. The people asked not to be named as the matter isn’t public. An ECB spokesperson declined to comment.

Read More: Data Center Lending Probed ...