Andrew Bailey Warns G20 of AI-Driven Economic and Cyber Risks

Bank of England Governor Andrew Bailey has warned G20 finance ministers that artificial intelligence (AI) could trigger a global economic downturn and create significant cyber security risks.

In an open letter to G20 finance ministers, Bailey, who also chairs the Financial Stability Board (FSB), highlighted the potential for AI-driven market correction.

The governor cautioned that high valuations, increased borrowing, and concentration of capital in a few large technology firms could amplify any correction.

He urged authorities responsible for financial security to develop 'appropriate steps to support safe and responsible model release and deployment on a global basis.'