A UK study has revealed that AI Generated content increases the risk of bank runs.

Fake computer generated news spread via AI, social media is becoming a cause for concern as it is the catalyst for bank runs, patronized by new British the banking sector, the modellers are advised to act in such a way to spot.

Generative AI is employed to produce fake stories that customers money is not safe, publishing something with discarded passwords, it can be spread in social media, either with the use of free ads, or with the help of embedded links which look like the original sites. This was revealed in a piece of research by the UK company Say No to Disinfo and Finland's public relations company Fenimore Harper.

With the development of AI, this risk has been exponentially magnified. In November, the G20's Financial Stability Board mentioned that generative AI could enable malicious actors to generate and spread disinformation that causes acute crises, with the implication of flash crashes and bank runs. Say No to Disinfo presented AI generated examples to bank customers in the UK, whereby one third indicated they would extremely likely move their money, while an additional 27 percent were somewhat likely.

The threat from disinformation is evolving as an emerging risk to the financial sector,"the report adds, but this is growing rapidly and is often not taken seriously. This major emergency, the loss of customer deposits through disinformation, harms the banking sector. Advertisement costs suggest that for every 10 pounds, 12.48 dollar placed into social media adverstising to amplify the fake content, one customer deposit might have to be moved in the region of 1 million pounds. The estimation was calculated through averages of deposits held by UK customers, cost of social media advertisement and estimates of the people that would see them.

Source:- https://cio.economictimes
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