Bank of England Warns: Advanced AI Threatens Global Financial Stability

The governor of the Bank of England, Andrew Bailey, has warned G20 members about the risk of advanced artificial intelligence (AI) models posing cyber threats that could spread across jurisdictions, threatening global financial stability. Bailey, in his role as chair of the Financial Stability Board (FSB), sent a letter to international finance ministers and central bank governors highlighting the increasing autonomy and problem-solving abilities of frontier AI models, which also present threat capabilities. He noted that many countries lack necessary protocols for managing the development, release, and deployment of these models, increasing risks to the financial sector and beyond. Bailey emphasized that cyber risk, driven by AI, is now the most immediate concern for the global financial system, as it could alter the speed, scale, and economics of attacks. He called for international cooperation to ensure the safe and responsible development and use of advanced AI models.