OSFI Publishes Report On AGILE Adoption Of AI In Financial Institutions

On March 23, 2026, the Office of the Superintendent of Financial Institutions (OSFI) published its final report from Phase II of the Financial Industry Forum on Artificial Intelligence (FIFAI), titled AI Risks and Opportunities: Adopting an AGILE Framework in Canadian Financial Services (the Report).

The Report brings together OSFI’s findings from previous interim reports and forum workshops with industry stakeholders on the development, deployment, and use of artificial intelligence (AI) within financial institutions. The Report introduces the AGILE framework, which provides several suggested implementation priorities for navigating AI risks and opportunities, including:

• Awareness: Understand AI-driven risks and threats and how to address the changing risk landscape with organizational oversight.
• Guardrails: Implement best practices for control, oversight, and transparency.
• Innovation: Treat AI as a driver of competitiveness, financial well-being, and protection.
• Learning: Build AI skills at all organizational levels and promote consumer AI literacy to better inform decision-making.
• Ecosystem Resiliency: Strengthen system-wide defences by improving oversight, security, and incident-response frameworks.

The Report identifies several categories of risk that may arise from the internal adoption of AI in financial institutions and example sources of those risks, including:

1. Strategic Risks: Among other things, institutions are cautioned against implementing rushed, incomplete, or inflexible AI strategies, which can result in gaps in critical data and technology infrastructure.
2. Security and Cybersecurity Threats: Cyberattacks and deepfake identity fraud are easier to develop and more effective with AI assistance. Institutions should consider secure digital identification and authentication methods to confirm employee and customer identity.
3. Consumer Risks: Increased AI use in consumer-impacting activities emphasizes the importance of transparency, explainability, and accountability to manage consumer trust.
4. Knowledge and Talent Gaps: Shortfalls in learning or failing to keep up with the pace of change can impede institutions from benefitting from AI-enhanced services.
5. Third-Party Concentration and Supply Chain Risks: Disruptions or breaches at one level in a multi-tiered supply chain can expose dependent institutions to financial loss and regulatory action.
6. Financial Stability Risks: Among other things, mass adoption of AI in financial markets can lead to trading models moving in concert in response to periods of stress, intensifying volatility on a short-term basis.

OSFI’s Report emphasizes that institutions must balance innovation with responsible adoption to reap the benefits of AI.

Summary By: Amy Ariganello