REGULATORTHE REGULATORY SIGNALWHAT AGENT DOWN REVEALED
Financial Stability BoardGlobal · 15 Oct 2026Sound Practices for Responsible AI Adoption
The FSB identifies third-party dependencies, business continuity, human oversight, and AI-related technology risks as central considerations for financial institutions adopting AI.The simulated loss of a critical AI provider exposed how quickly operational dependencies can become recovery challenges, particularly when automation has replaced human processing capacity.Read the FSB report →
MASSingapore · 7 Oct 2026
Contingency plans for “potential failures, unexpected behaviour of third-party AI, or discontinuing of support by vendors”.The scenario trigger was exactly this: the vendor went into administration. No shared recovery strategy emerged.Read the MAS guidelines →
European Supervisory AuthoritiesEuropean Union · 31 Jul 2026Frontier AI and ICT Risk
The EBA, EIOPA, and ESMA call for stronger governance and a consistent supervisory approach to managing the cybersecurity and operational risks of frontier AI models.The scenario illustrates how reliance on a common AI provider can create concentrated operational exposure, requiring coordinated response and tested contingency arrangements.Read the joint supervisory statement →
OSFICanada · Jul 2026
“Test AI failure and outage scenarios and establish manual fallbacks and continuity measures for AI-supported business processes.”
FCAUK · 6 Jul 2026
Agentic AI moves firms from assistance to delegation. Staff shift from decision-makers to supervisors.The scenario's 70% headcount cut is that shift. When the agent failed, the remaining team could not absorb the volume.Read the Mills Review →
APRAAustralia · 30 Apr 2026
“Where AI supports critical operations, credible fallback processes are required.”
OCC / Fed / FDICUS · 17 Apr 2026
Interagency model risk guidance.The failed agent was a third-party AI model running fraud verification and sanctions screening. When it went offline, no single recovery strategy emerged and only 16% were confident of holding minimum service levels.Read the interagency guidance →
Quotes from primary sources. Agent Down responses, n=31. Updated October 2026.