Australia’s APRA Issues AI Risk Warning to Banks and Insurers

**APRA AI risk warning:** The Australian Prudential Regulation Authority warned that rapid AI adoption in banks, insurers and superannuation trustees has outpaced governance, risk management and operational resilience, highlighting gaps in board oversight, fragmented assurance across cybersecurity/privacy/procurement, limited transparency of third-party models, and concentration risks from reliance on single AI providers while calling for immediate improvements and continued supervisory engagement.