Bank of England Warns of AI-Driven Financial Stability Risks
Bank of England Governor Andrew Bailey has expressed concern over the increasing sophistication of AI models, warning that they are becoming a bigger risk to financial stability.
In a letter to G20 finance ministers and central bank governors ahead of a major meeting, Bailey highlighted the interconnected nature of global finances, which makes them vulnerable to cyberattacks.
He warned that AI systems are quicker at discovering vulnerabilities and faster at exploiting them, making it easier for criminals to carry out attacks.
Bailey also pointed out that different countries have varying levels of cyber resilience, regulation, incident response capabilities, legal protection, and recovery readiness, which can compromise global financial stability.