Europe’s top banking watchdogs have warned that frontier AI models such as Anthropic’s Mythos could create “systemic risks to the financial system” as they gave lenders a tight four-month deadline to prepare for greater cyber security threats. The European Central Bank’s chief financial supervisor Claudia Buch on Tuesday sent a letter to 110 lenders giving them until the end of October to come up with a “comprehensive action plan” to combat the cyber risks posed by state of the art AI models. In a separate warning, the European Systemic Risk Board said modern AI models could undermine financial stability across the Eurozone as hackers can use them to cheaply automate highly complex attacks, while banks remain bogged down by regulatory requirements, legacy IT systems and slow updates from software providers.

Full report : IT weaknesses could be exploited by frontier models in a ‘matter of minutes’, say ECB and ESRB.