European central bank leaders call for AI guardrails to protect markets

European regulators have warned that agentic artificial intelligence is evolving faster than existing financial regulations, posing risks to financial markets. Central banks are calling for new safeguards, such as market circuit breakers or kill switches, to prevent disruptions caused by faulty AI models during market stress. Concerns have been raised about the potential for increased market volatility and financial stability risks tied to AI investments. The warnings come as Europe debates access to advanced AI following recent U.S. restrictions on Anthropic’s models.