Bailey Warns G20 of AI-Driven Cyber Threat to Global Financial System

Andrew Bailey, governor of the Bank of England and chair of the Financial Stability Board (FSB), has sent a warning letter to G20 finance ministers about the threat posed by advanced artificial intelligence models. These AI models are showing increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities.

The letter was sent before the G20 meeting in Asheville, North Carolina, where central bankers and finance ministers will be present. Bailey warned that frontier AI models may have the ability to materially alter the speed, scale, and economics of cyber risk.

This means that AI could make cyber attacks happen faster, cause more damage, and cost less for attackers to carry out. The governor also pointed out that British banks have been trying to get trial access to Anthropic's Mythos model but were unable to due to political tensions in the United States.

Notably, despite being intended for defense, the tool is in the same class of technology that Bailey's G20 letter flags as a systemic threat. He wants governments to agree on rules for safely releasing powerful AI models before the next AI breakthrough.

Bailey also warned about the rising debt levels in bond and equity markets, stating that high stock valuations, market concentration, and investor excitement about AI are combining in a risky way that 'could amplify a future market correction.'