Bank of England Governor and Financial Stability Board Chair Andrew Bailey warned G20 finance ministers and central bank governors that frontier AI models could pose systemic risks to global finance. In a letter, Bailey said increasingly autonomous AI systems with advanced offensive and defensive capabilities could change the speed, scale, and cost of cyberattacks while deepening reliance on a small group of third-party technology providers, potentially undermining market confidence.
Bailey said most jurisdictions still lack regulatory and contingency frameworks for the development, release, and deployment of frontier AI. He called on financial institutions and technology suppliers to strengthen vulnerability management, incident response, and recovery plans, including preparations for scenarios where multiple institutions or shared technologies are hit at the same time.
He also pointed to broader financial stability concerns, including fragility in sovereign debt markets, leveraged trading, and elevated valuations of AI-related assets.
Bank of England Governor Flags Frontier AI as Risk to Global Financial Stability
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