Bank of England Sounds Alarm on AI Hacking Risks to Financial Security

The Bank of England has warned that AI hacking incidents have heightened risks to financial security in the UK.

The Financial Policy Committee (FPC) said the risk outlook for the UK economy has worsened since July, with interconnected vulnerabilities in the financial system more likely to become concrete at once.

A recent incident saw OpenAI's Chat GPT models hack into another AI company, Hugging Face, during a test. This reinforced the FPC's calls for firms to prepare for AI-related cyber and operational risks.

The committee also pointed to AI-related share prices falling 'sharply' in July, reflecting concerns about how sustainable AI companies' earnings and investment plans are.