Global regulators step up oversight of AI risks in finance

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Global financial watchdogs are intensifying their scrutiny of artificial intelligence (AI) in the banking sector, warning that heavy reliance on shared AI systems could threaten financial stability. As the use of AI accelerates across global markets, regulators are moving to monitor systemic risks and strengthen their own technological capabilities.

In a report published Friday, the Financial Stability Board (FSB) — which advises G20 governments — said widespread adoption of the same AI models and infrastructure could create “herd-like behaviour” across financial institutions. “This heavy reliance can create vulnerabilities if there are few alternatives available,” the FSB cautioned, warning that such concentration could amplify shocks during market stress.

A separate study by the Bank for International Settlements (BIS) urged regulators and central banks to “raise their game” in monitoring and using AI. The BIS said authorities must not only understand AI’s potential to reshape markets but also adopt the technology themselves to improve supervision and data analysis.

The report comes amid an international race — led by the United States and China — to dominate next-generation AI tools and applications, including those that underpin financial services.

While the FSB said there is currently “little empirical evidence” that AI-driven correlations have directly impacted market outcomes, it warned that AI could increase exposure to cyberattacks and algorithmic fraud.

Some jurisdictions have already acted. The European Union’s Digital Operational Resilience Act (DORA), which took effect in January, establishes new rules for digital and AI-based systems used by financial institutions.

The emerging consensus among regulators is clear: AI promises efficiency and insight, but without vigilant oversight, it could become a new source of systemic risk in global finance.

Chinese humanoid robot maker AgiBot plans $6.4 billion Hong Kong IPO

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Chinese robotics firm AgiBot is preparing for a Hong Kong initial public offering (IPO) next year that could value the company between HK$40 billion and HK$50 billion ($5.14–$6.4 billion), according to multiple sources familiar with the matter. The move positions AgiBot as one of China’s most prominent humanoid robot startups entering public markets amid the country’s rapid push into automation and AI-driven robotics.

Backed by major investors including Tencent, HongShan Capital Group (HSG), LG Electronics, and BYD, AgiBot has hired CICC, CITIC Securities, and Morgan Stanley to manage the listing. The firm reportedly plans to issue 15–25% of its shares and aims to file a preliminary prospectus in early 2026, targeting a Q3 listing.

Founded in 2023 by former Huawei engineers Deng Taihua and Peng Zhihui, Shanghai-based AgiBot develops the Yuanzheng and Lingxi humanoid robot series, which perform complex manual tasks such as folding clothes, making coffee, and cleaning. The robots are designed for industrial and service applications in manufacturing and logistics, and the company also provides data collection tools for AI model training.

AgiBot’s rise has been accelerated by Chinese President Xi Jinping’s public endorsement, following his visit to its Shanghai facility earlier this year. The company recently partnered with Fulin Precision Engineering to deploy nearly 100 Yuanzheng robots in automotive part factories.

The IPO would follow that of Ubtech Robotics, the first humanoid robot firm to list in Hong Kong, whose shares have surged 150% this year. Rival Unitree Robotics is also seeking a $7 billion listing on Shanghai’s STAR Market.

Hong Kong has emerged as the world’s top IPO destination in 2025, with more than 270 listings raising $24 billion, largely from mainland Chinese companies. AgiBot’s debut would further solidify the city’s growing role as the hub for AI and robotics capital markets.

UK moves to curb Google’s search dominance under new Big Tech powers

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Britain’s competition regulator has designated Google as having strategic market status in online search — a landmark ruling that gives the Competition and Markets Authority (CMA) sweeping new powers to reshape how the tech giant operates in the UK.

The CMA said Google controls over 90% of all UK search traffic, cementing a dominant position in both search and search advertising. The designation, announced Friday, does not imply wrongdoing but allows the regulator to intervene directly to ensure fairer competition and impose fines for non-compliance.

The CMA outlined potential changes earlier this year, including fairer ranking systems, easier switching to alternative search engines, and greater publisher control over how their content is used in AI-generated responses. These measures could particularly affect Google’s AI Overviews and AI Mode features, though its Gemini AI assistant remains outside the current scope.

Google’s Senior Director for Competition, Oliver Bethell, argued the proposals “would inhibit UK innovation and growth” at a time of “profound AI-based innovation.” The company recently announced a £5 billion investment in Britain.

The ruling marks the CMA’s first use of its expanded Big Tech authority, introduced to address the dominance of firms like Google, Apple, and Amazon. The regulator’s second probe—into mobile operating systems—could also lead to another designation targeting Android.

The move follows mounting global scrutiny: the EU fined Google $3.45 billion for antitrust violations in ad tech last month, while U.S. regulators are pressing to break up parts of its advertising empire.

Competition lawyer Tom Smith, a former CMA director, said the decision could rebalance the market by “giving website operators more control over how their content is used for AI training,” curbing Google’s advantage in artificial intelligence.