Regulatory Alerts2026-07-01
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Köhler-Geib Interview: Europe Must Strengthen Digital Sovereignty
Bundesbank board member Fritzi Köhler-Geib warns that Europe risks falling behind the US and China in artificial intelligence, necessitating a push for digital sovereignty to ensure access to critical models. She highlights the dangers of algorithmic herding behavior in financial markets caused by AI training on identical datasets and notes that while central banks are actively monitoring these risks, AI agents are increasingly making autonomous trading decisions. Köhler-Geib further cautions that current AI models lack self-reflection and cannot reliably eliminate biases, representing a significant limitation for their use in finance.
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