The IMF Note examines how artificial intelligence is reshaping cyber risk in finance by increasing the speed, scale and interconnectedness of attacks. AI accelerates vulnerability discovery, phishing, exploit development, malware generation and cyber operations, enabling attacks to spread more rapidly and at lower cost. Shared cloud platforms, software, payment infrastructure, AI systems and third-party technology providers create common dependencies that can transmit cyber disruptions across multiple financial institutions simultaneously. AI strengthens both cyber defence and cyber offence, compressing the time available for institutions to detect, respond to and recover from attacks. Existing cyber resilience and supervisory frameworks were largely developed before machine-speed AI capabilities emerged and often provide limited oversight of AI-specific and third-party cyber risks. Emerging market and developing economies face similar cyber threats but generally have weaker supervisory capacity, fewer defensive resources and slower adoption of advanced cybersecurity capabilities. The IMF’s seven policy recommendations include updating cyber-risk surveillance, strengthening third-party oversight, enhancing cross-sector coordination, expanding cyber simulation exercises, developing AI-specific disclosure standards, advancing international coordination, and establishing frontier AI monitoring capacity.