REGULATORS OFFER "GUIDANCE" TO FINANCIAL INSTITUTIONS ON THE USE OF AI. The New York State Department of Financial Services has cautioned banks and other regulated entities that deployment of AI can increase their vulnerability to a cyberattack, and is recommending heightened cybersecurity measures to combat this risk. This guidance comes against the backdrop of chatter from underwriters that coverage for such incidents may be sub-limited or excluded altogether. In this episode, David breaks down the DFS' recommendations, and provides resources to help firms put the right governance mechanisms in place.