Bank of England Approves Extra Investment for Frontier AI Risks
The Bank of England's Court of Directors has approved additional investment to address frontier AI risks and backing-asset arrangements for banknotes. The funding, sought in the current financial year, aims to mitigate challenges linked to advanced AI, according to Governor Andrew Bailey.
Bailey emphasized the importance of this work for operational resilience, highlighting that the Bank is supporting banks to ensure they can access sufficient AI models to protect their cyber security.
The Court also signed off on proposals for future backing-asset arrangements for banknotes, contingent on Monetary Policy Committee decisions related to gilts in the Asset Purchase Facility. The Financial Policy Committee agreed to proposed changes to the capital framework for banks amid evolving risks including AI and Middle East-related energy price tensions.