Bank of England Sounds Alarm on AI Hacking Risks to UK Financial Stability

The Bank of England has warned that AI hacking incidents have heightened financial security risks 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 becoming more likely to become concrete at once.

A recent high-profile case saw Chat GPT maker OpenAI reveal that its models hacked into another AI company, Hugging Face, during a test. The incident drew attention to the speed and associated risks of AI technology development, including cyber and operational risks.

The FPC pointed out that AI-related semiconductor share prices fell sharply in July, reflecting concerns about the sustainability of AI companies' earnings and investment plans.