RBI chief says next financial crisis may start with a cyberattack

Reserve Bank of India governor Sanjay Malhotra warned that the next financial crisis could begin with a geopolitical event, a cyberattack or a technological failure. He singled out AI for worsening cyber risks, faulty models, reliance on outside suppliers and weak human oversight, and flagged overvalued AI stocks.

• Malhotra: crisis may start with war, cyberattack or tech failure
• AI worsens cyber risks and adds threats from faulty models and weak oversight
• A drop in AI spending could trigger a sharp fall in asset prices, RBI chief warned
• In August the FSB called AI-driven cyberattacks the top risk to global finance