Fritzi Köhler-Geib, an executive at the Deutsche Bundesbank, has warned about the potential risks posed by the use of artificial intelligence models to global financial stability. Speaking to the “Süddeutsche Zeitung”, Köhler-Geib noted that while algorithm-based trading has long been established, AI is fundamentally changing the landscape by expanding the boundaries of influence. She specified that increasingly capable “agentic” AI systems are taking independent decisions without requiring human intervention in individual cases.
The Bundesbank executive also pointed out that AI models can inadvertently develop biases similar to those found among human investors. These systems might, for instance, become over-optimistic or disregard significant risks. While these models are often excellent at identifying these so-called biases, Köhler-Geib admitted they currently lack the ability to reliably halt them. In response, the European Banking Authority is currently conducting a survey across supervised banks to gain a clearer picture of where and how AI is being applied.
Beyond the technical risks, Köhler-Geib criticized Europe’s reliance on AI technology. She stated that the continent is currently significantly behind the United States and China in developing major AI models. This, she argued, presents a structural challenge that must be addressed. She asserted that Europe should not merely be a passive observer of the technology developed by others; rather, it should be in a position to declare that it possesses an AI capability at least as robust. “Clearly,” Köhler-Geib concluded, “we must advance our digital sovereignty.”
