DFSA flags rising risks from AI, quantum computing

The Dubai Financial Services Authority (DFSA), the independent regulator of financial services conducted in or from the DIFC, has sounded a clear warning about the rising convergence of cyber risks, artificial intelligence (AI), and quantum computing in a new report that outlines the future of digital regulation for global financial systems.

- Issac John [e-mail]

"Cyber and artificial intelligence risk in financial services: Strengthening oversight through international dialogue," released on June 30, highlights how emerging technologies are reshaping both the opportunity landscape and the threat environment across financial services.

Published after the DFSA’s inaugural Cyber and AI Risk Regulatory College — attended by 70 senior officials from 18 regulatory authorities worldwide — the report captures regulatory consensus on the accelerating pace of digital transformation and the urgent need for coordinated global oversight. The report underscored the mounting complexity of cyber threats, the disruptive potential of AI, and the systemic vulnerabilities posed by quantum computing.

As the lines between operational resilience, cybersecurity, and technological innovation continue to blur, the DFSA’s message is clear: regulatory frameworks must evolve swiftly and collaboratively to protect the integrity of global financial systems in a world of accelerated digital disruption.

"Digital risks are no longer peripheral — they are fast becoming systemic," said Justin Baldacchino, managing director of Supervision at DFSA. "This report reflects a growing supervisory consensus on where these risks are converging and how regulatory approaches are evolving."