Five Eyes and Australian regulators warn of AI-driven cyber threats

Regulatory bodies in Australia and the Five Eyes alliance have issued warnings regarding the impact of artificial intelligence on the scale and pace of cyber-attacks. The Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the cybersecurity agencies of Canada, New Zealand, the United Kingdom, and the United States have emphasized that boards and executives are responsible for addressing these evolving threats.

APRA’s review of large financial institutions found that AI governance and risk management practices have not kept pace with technology adoption. The regulator is calling for improved AI governance frameworks, defined accountability, and stronger third-party controls. Similarly, ASIC has urged market participants to act on fundamental cyber resilience, such as patching promptly and reviewing user access, rather than waiting for perfect clarity on AI threats. ASIC noted that governance must be backed by evidence, including test results and independent validation, rather than relying solely on assurances.