AI Need Not Slow Down, Governance Needs to Catch Up, APRA Tells Financial Services Industry
The Australian Financial Review
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- Date Published
- 1 Sept 2026
- Priority Score
- 3
- Australian
- Yes
- Created
- 1 Sept 2026, 04:00 am
Description
APRA says banks can’t afford to be left behind in the rollout of artificial intelligence, and urges them to match their deployment with better governance.
Summary
The Australian Prudential Regulation Authority (APRA) argues that financial institutions must accelerate the adoption of AI to remain competitive, despite the rapid pace of technological advancement. The regulator emphasizes that rather than pausing deployment, banks and insurers must urgently strengthen governance frameworks to manage emerging systemic risks. This stance highlights a regulatory shift toward 'safety-in-motion,' focusing on real-time risk controls within the Australian financial sector. While primarily focused on prudential risk, the emphasis on robust oversight for rapidly evolving frontier capabilities is relevant to broader efforts in mitigating institutional instability caused by AI.
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CompaniesFinancial ServicesAIPrint articleJames EyersSenior ReporterSep 1, 2026 – 12.30pmArtificial intelligence is accelerating at such a rapid pace that financial services players have no choice but to adopt it broadly and improve governance along the way, the prudential regulator says, as it backs a new industry blueprint to improve the management of emerging risks.“It is easy for a regulator to say, ‘Just slow down and stop [and] get these things in place before you start operating’,” the Australian Prudential Regulation Authority’s top banking regulator Therese McCarthy Hockey said. “Actually, you just don’t have that luxury.”Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreAIRisk managementGovernanceBig fourSuperannuationGeneral insuranceAPRARegulationFintechBanking productsHayne falloutFetching latest articles