RBC to block personal AI agents from access to online banking - Financial Post

RBC says it is blocking AI agents from accessing digital properties to protect the security of client information. Photo by Cole Burston/Bloomberg Article content Canada’s largest bank will block third-party personal artificial intelligence agents from direct access to its digital properties, such as online banking. Sign In or Create an Account Email Address Continue or View more offers Article content “We understand that this may be disappointing for the small portion of our clients who use these tools,” Royal Bank of Canada said in a statement on Tuesday. “We make this decision with the safety and security of our clients and systems at the forefront.” Article content We apologize, but this video has failed to load. Try refreshing your browser, or tap here to see other videos from our team . We apologize, but this video has failed to load. Try refreshing your browser, or tap here to see other videos from our team . Play Video Article content Article content RBC chief executive Dave McKay said AI agents could help consumers, but they are becoming more autonomous and the stakes are high if something goes wrong, ranging from fraud and consumer harm to risks that could ripple more broadly through the financial system. Article content Posthaste Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m. There was an error, please provide a valid email address. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Posthaste will soon be in your inbox. We encountered an issue signing you up. Please try again Interested in more newsletters? Browse here. Article content “Trust is core to our relationship with our clients,” he said in a post on LinkedIn. “While we appreciate the benefits of using AI to save time, nothing is more important than the security of client information.” Article content Some of Canada’s other big banks are also taking action on AI agents. Article content Toronto-Dominion Bank said it will block all third-party personal AI agents from direct access to banking information where authentication is required. Article content “Our focus is on helping build a future where trusted AI agents can create meaningful value for clients while protecting their privacy, security and control over their financial information,” a spokesperson said. Article content Bank of Nova Scotia said it will limit third-party AI agents from accessing banking platforms, while National Bank of Canada said it is monitoring the development of consumer AI agents, such as Muse, and assessing both the opportunities they may create for clients and the associated risks. Article content Article content Bank of Montreal said it does not permit AI agents to access its digital properties or execute transactions. Article content Read More Canada's banks are charging unclear fees that discourage competition, says consumer watchdog RBC considers blocking Meta’s Muse AI agent, CEO Dave McKay says Article content An AI agent is a piece of software that does things autonomously for its users. Such tools can be useful, but they are completely unregulated, said Evan Light, an associate professor at the University of Toronto, and giving them access to your personal banking account might make it do things that a person doesn’t want to do. Article content He said RBC’s decision was wise and hopes it will put pressure on the government to take additional steps in regulating the use of AI in the financial sector. Article content “There’s a lot of pressure on various industries to adopt AI in unproven ways,” he said. “I hope the future includes a lot of regulation and oversight and transparency. Right now, in the world of AI agents, there is none of that.” Article content A series of global incidents related to AI agents going rogue compelled Canada’s top banking regulator to elevate the risks that financial institutions face due to AI. Article content “Recent stories about how agents are at least interpreting their task authorizations liberally and potentially posing dangers to institutions — that’s frightening,” Peter Routledge, head of the Office of the Superintendent of Financial Institutions (OSFI), said at a press conference earlier this month. “That is a risk front and centre for us. AI has sort of moved along the capabilities curve.” Article content OSFI is also considering whether the financial system requires an AI safety code, though Routledge did not provide details on what such a code would look like. Article content “Maybe it plays a useful role in elevating basic standards to a minimum level, so we have some semblance of confidence that across the financial system there’s a basic level of safety and protection,” he said. Article content “I am using the words ‘safety code’ as sort of emblematic of that. We haven’t developed it. I don’t have a draft of it. I have asked my team to start thinking about it.” Article content • Email: nkarim@postmedia.com Article content Trending Banks raise prime rate after Bank of Canada interest rate increase Banking Bank of Canada raises interest rate to 2.5% in first hike since 2023 Economy Canada’s largest oil and gas driller heading into one of its busiest winters in years Oil & Gas Terence Corcoran: Canada's First Nations make another power grab FP Comment Canada, an energy superpower: No longer a pipe dream Commodities Share this article in your social network Share this Story : Financial Post Copy Link Email X Reddit Pinterest LinkedIn Tumblr