New Zealand financial services groups have been told they are expected to maintain cybersecurity strategies and frameworks that address threats as AI becomes more prevalent.

The Reserve Bank of New Zealand and Financial Markets Authority have outlined their supervisory expectations on cyber risks associated with frontier AI, and say advances in the technology are changing the threat environment.

“Boards and senior management need to know where AI is being used in their business, understand the risks it brings, and be clear about who is accountable for managing them,” FMA executive director for response and enforcement Louise Unger said.

AI can bring benefits for entities and their customers, but it also changes the risks they face, she adds.

RBNZ assistant governor for financial stability Angus McGregor says operational resilience remains a key supervisory focus for the central bank and the FMA.