The Cambridge Centre for Alternative Finance (CCAF) has published its 2026 Global AI in Financial Services Report, produced with partners including the Bank for International Settlements and the International Monetary Fund. It covers 628 organisations, including 352 FS industry respondents (the rest are AI vendors and regulators).
It’s 140 pages, interesting but long, although there’s a good summary.
Here are two findings of interest:
data privacy and protection
model hallucinations and unreliable outputs
loss of human oversight and collective forgetting
(the report defines “collective forgetting” as “A systemic risk tied to automation, where organisations can lose the institutional memory and capabilities to execute processes manually if required.”)
About two-thirds of industry respondents are not monitoring for bias, discrimination or exclusion in their AI. There will be various reasons for this, including the measurement problem from last week’s article. And it seems as though only a subset (263) of the industry respondents answered this question, but it’s still quite a striking ratio. (page 103)
Source: The 2026 Global AI in Financial Services Report: Adoption, impact and risks, Cambridge Centre for Alternative Finance, University of Cambridge (https://www.jbs.cam.ac.uk/wp-content/uploads/2026/05/ccaf-2026-04-28-global-ai-in-financial-services-report-2.pdf)
Disclaimer: The info in this article is not legal advice. It may not be relevant to your circumstances. It was written for specific contexts within banks and insurers, may not apply to other contexts, and may not be relevant to other types of organisations.