AI Threat Looms Over Global Financial Markets, Warns Bank of England Governor

Bank of England Governor Andrew Bailey has sounded an alarm on the growing risks associated with rapidly advancing artificial intelligence (AI) models. In a letter to G20 finance ministers and central bank governors, Bailey warned that frontier AI models could increase cyber risks and potentially trigger a disorderly correction across global financial markets.

According to Bailey, increasingly powerful AI systems could transform not only the sophistication of cyberattacks but also the speed, scale, and cost at which attacks can be carried out. He expressed concern that many countries have yet to establish adequate protocols for managing the development, release, and deployment of advanced frontier AI models.

The warning comes amid growing international concern over the safety and security implications of increasingly capable AI systems. Bailey urged financial institutions and their technology providers to strengthen their vulnerability management systems as AI capabilities continue to advance.