Xiang-li Lim is a Financial Sector Expert at the IMF's Global Markets Analysis Division, which focuses on high-frequency market surveillance. The division is also responsible for analyzing conjunctural developments for the global financial stability report. Formerly, he was with the Central Bank of Malaysia’s Investment Operations and Financial Market Department.

The IMF is a global organization that works to achieve sustainable growth and prosperity for all of its 191 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.

Advances in Artificial Intelligence: Implications for Capital Market Activities

Chapter 3 of the IMF’s October 2024 Global Financial Stability Report assesses recent developments in AI and Generative AI and their implications for capital markets. AI may reduce some financial stability risks by enabling superior risk management, deepening market liquidity, and improving market monitoring by both participants and regulators. New risks may arise, including increased market speed and volatility under stress, more opacity and monitoring challenges of non-bank financial institutions, increased operational risks, and increased cyber and market manipulation risks. Additional policy responses should be considered for relevant authorities to be prepared for these potentially transformative changes.