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ARTICLE · 28 OCTOBER 2024

NYDFS Speaks Out On AI And Its Cybersecurity Risks

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The New York Department of Financial Services ("NYDFS") recently published guidance on managing cyber risks related to AI for the financial services and insurance industry.

United StatesTechnology
Julia K. Kadish
Julia K. Kadish
Samantha K. Davis
Samantha K. Davis
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The New York Department of Financial Services ("NYDFS") recently published guidance on managing cyber risks related to AI for the financial services and insurance industry. Though the circular letter does not introduce any per se "new" obligations, the guidance speaks to the Agency's expectations for addressing AI within its existing cybersecurity regulations.

The letter identifies specific AI-related cybersecurity threats, such as AI-enabled social engineering. AI may also enhance typical cybersecurity attacks by amplifying the potency, scale, and speed of an attack. The letter also notes that AI modules may leverage large volumes of non-public information and become a target of an attack. Additionally, reliance on third party providers and vendors for AI-tools introduces supply chain vulnerabilities.

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