Government report for the first time identifies AI as potential risk to financial stability

A new government report has for the first time identified artificial intelligence as a potential risk to the nation's financial stability. 

The Financial Stability Oversight Council (FSOC) — a group that's charged with monitoring potential vulnerabilities to the financial sector and counts Treasury Secretary Janet Yellen, Federal Reserve Chair Jerome Powell and Securities and Exchange Commission Chair Gary Gensler as members — acknowledged this risk, along with 13 others, in its annual report, which was released Thursday. 

"The reliance of AI systems on large datasets and third-party vendors introduces operational risks related to data controls, privacy, and cybersecurity," the report reads.