European Central Bank President Christine Lagarde stated at the European Systemic Risk Board (ESRB) annual conference that the rising importance of artificial intelligence (AI) is testing the system-wide view of financial stability. She highlighted three areas of particular attention: AI agents pursuing unintended goals in financial market trading, cyber resilience risks from attacks on shared technology, and geopolitical tensions increasing cyberattack threats and restricting frontier AI models. Lagarde noted that nearly nine out of ten significant euro area banks use generative AI, and a recent survey showed seven out of ten EU securities market firms expected to increase AI investment. She cited ESRB warnings that widespread use of similar AI models could amplify market moves, and research indicating AI models might engage in insider trading or market manipulation. Lagarde also warned that rapid AI advancements could reduce the interval between initial exploits and widespread automated cyberattacks from weeks to hours, with several incidents of AI agents breaching systems already reported this year.