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FRM Part II · FRM Exam Part II · Advances in Artificial Intelligence: Implications for Capital Markets Activities

A central bank is evaluating how AI could be exploited by malicious actors to threaten financial stability. Which scenario best illustrates this channel?

Using generative AI to create convincing deepfakes or disinformation that sparks a deposit run or market panic illustrates malicious exploitation. Such content can rapidly erode confidence, a core driver of instability. The other examples are routine efficiency uses without an adversarial channel.

  1. AUsing generative AI to produce convincing deepfakes or disinformation that triggers a deposit run or market panicCorrect
  2. BUsing AI to reduce back-office processing times at a bank
  3. CUsing AI to improve internal credit scoring accuracy
  4. DUsing AI to translate regulatory documents

Explanation

Malicious use includes disinformation, deepfakes and enhanced cyberattacks that can erode confidence and trigger runs. The other options are benign uses of AI without an adversarial stability channel.

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