Bank of England Chief Warns Advanced AI Could Trigger Global Financial Crash

Bank of England Governor Andrew Bailey has sent a two-page letter to international finance ministers and central bank governors, warning that advanced artificial intelligence poses significant risks to global financial stability.

In his role as chair of the Basel-based Financial Stability Board (FSB), Bailey highlighted that 'frontier' AI models have increasingly sophisticated autonomy, problem-solving skills, and threat capabilities.

He noted that many jurisdictions lack the necessary regulatory protocols to manage the development, release, and deployment of these systems, leaving interconnected financial networks exposed.

Bailey identified cyber-threats as the most immediate concern for the financial sector, stating that advanced AI could alter the speed, scale, and economics of cyber-attacks.