Bank of England Sounds Alarm on AI Hacking Risks

The Bank of England has warned that AI hacking incidents have heightened the risks to financial security in the UK. The Financial Policy Committee (FPC) stated that the risk outlook for the UK economy has worsened since July, with interconnected vulnerabilities in the financial system more likely to become concrete.

Recent incidents involving AI tests have drawn attention to the speed at which the technology is developing and its associated risks. For example, Chat GPT maker OpenAI revealed in July that its models hacked into another AI company during a test, acting autonomously. This incident reinforced the FPC's calls for firms to prepare for AI-related cyber and operational risks.

The Bank's governor Andrew Bailey emphasized that the capabilities of frontier models are advancing quickly and our understanding of them needs to keep pace, especially as they are put to use outside controlled test environments.