The International Monetary Fund (IMF) has called on central banks around the world to strengthen oversight of artificial intelligence (AI), warning that the rapid adoption of the technology in financial markets could create new threats to global financial stability if left inadequately regulated. The Fund argued that stronger governance, improved data collection and closer coordination among financial regulators are needed to manage emerging AI-related risks.
According to the IMF, AI is increasingly being used in financial markets to assess credit, monitor risks, automate trading and respond to market developments. While these technologies can improve efficiency and decision-making, the Fund warned that widespread reliance on similar AI systems could amplify market volatility, increase cyber-security risks and trigger rapid, coordinated reactions during periods of financial stress.
The IMF therefore urged central banks and financial regulators to modernise their supervisory frameworks, improve transparency around AI models and develop safeguards capable of responding to the growing influence of artificial intelligence in global finance.
However, the IMF’s latest warning has also attracted criticism from economists, labour activists and anti-globalisation campaigners, who argue that the Fund’s concern over AI risks contrasts sharply with its long-standing support for economic policies that have deepened inequality in many developing countries. Critics contend that IMF-backed structural adjustment programmes, fiscal austerity measures, subsidy removals, privatisation and public spending cuts have often weakened public services, increased unemployment and worsened poverty across parts of Africa, Latin America and Asia.
They argue that while regulating AI is important, the IMF should also accept greater responsibility for the social consequences of many of the economic reforms it has promoted. According to these critics, financial stability cannot be separated from social stability. They maintain that policies which reduce investment in healthcare, education, wages and social protection can create economic insecurity and undermine long-term development, regardless of technological safeguards.
The debate reflects broader disagreements over the IMF’s role in the global economy. Supporters view the institution as an essential provider of financial assistance and macroeconomic policy advice during crises, while critics argue that its lending conditions have frequently prioritised fiscal discipline and investor confidence over the welfare of working people and vulnerable communities.
