European Systemic Risk Board issues warning on AI-driven cyber threats

The European Systemic Risk Board (ESRB) has issued warning ESRB/2026/3 regarding systemic cybersecurity risks posed by advanced artificial intelligence models. The board states that these models could significantly alter the threat landscape in the short-to-medium term by increasing the speed, scale, and complexity of potential cyberattacks. Key concerns include the ability of AI to facilitate rapid vulnerability identification, the development of malicious tools, and the exploitation of security flaws. These factors risk reducing the time available for organizations to react to incoming security threats. The ESRB emphasizes that the danger extends beyond individual entities to the stability of the entire financial system. Consequently, the board calls for a coordinated response from supervisory authorities, financial institutions, and major technology providers at the European level. In response, the Central Bank of Cyprus confirmed it will monitor the situation closely and expects financial institutions to strengthen their cyber resilience measures.