Bailey Warns of AI-Driven Cyber Risk Threat to Global Markets

Bank of England Governor Andrew Bailey has sounded an alarm about the potential impact of advanced artificial intelligence models on global financial markets. In a letter to G20 finance ministers and central bank governors, Bailey highlighted the growing sophistication and autonomy of frontier AI models.

He warned that these models could trigger a disorderly correction in global financial markets due to their ability to alter the speed, scale, and economics of cyber risk. The Financial Stability Board, which Bailey chairs, identified cyber risk as the most immediate concern for the financial system.

Bailey noted that many jurisdictions lack protocols to manage the development, release, and deployment of advanced frontier AI models, increasing risks for the financial sector. He called on financial institutions and technology providers to improve vulnerability management, response, and recovery capabilities.