ECB’s Lagarde Warns Europe Needs Its Own AI Capabilities to Protect Financial Stability

European Central Bank President Christine Lagarde warned that Europe could expose its financial system to new vulnerabilities if banks, asset managers and critical institutions come to depend on frontier AI models controlled outside the region. In a speech opening the European Systemic Risk Board’s annual conference, she said Europe needs to develop AI capabilities of its own and remain an essential part of the AI supply chain so access to tools important for financial resilience is not controlled elsewhere.