The three European Supervisory Authorities (EBA, EIOPA, and ESMA) have issued a joint statement supporting a warning from the European Systemic Risk Board (ESRB) on systemic cyber risks posed by frontier AI models. The statement, published on 7 July 2026, underscores the potential for advanced artificial intelligence to amplify vulnerabilities in the financial sector, including through model opacity, concentration of AI providers, and the speed of automated decision-making.
The ESAs' endorsement aligns with the ESRB's earlier assessment that frontier AI models could create new channels for cyberattacks, such as sophisticated phishing, market manipulation, or cascading failures across interconnected financial systems. The joint statement calls for enhanced monitoring, cross-sector coordination, and the development of regulatory frameworks to address these risks.
This marks the first time the ESAs have collectively weighed in on the cybersecurity implications of frontier AI, signaling a growing regulatory focus on the intersection of AI and financial stability. The statement does not propose specific new rules but urges national competent authorities and financial institutions to integrate AI-related cyber risks into their existing risk management and business continuity planning.
The ESAs' support for the ESRB warning is expected to inform ongoing discussions at the European Commission and the European Parliament on the AI Act's implementation and potential amendments to the Digital Operational Resilience Act (DORA). Financial institutions, particularly those deploying or relying on frontier AI models, may face increased supervisory scrutiny and expectations to demonstrate robust governance and resilience measures.
Industry stakeholders, including banks, insurers, and asset managers, will need to assess their exposure to AI-driven cyber threats and invest in defensive capabilities. The statement also implies potential costs for AI developers and cloud service providers, who may face demands for greater transparency and security assurances. Consumer and investor groups are likely to welcome the heightened attention to systemic risks, though some may argue for more prescriptive regulation.
The ESAs have indicated they will continue to monitor developments and may issue further guidance as the technology evolves. The European Commission is expected to publish a report on the financial stability implications of AI later this year, building on the ESRB warning and the ESAs' support.