FSB Chair Warns of Cyber Risks From Advanced AI Models Amid Market Volatility
Financial Stability Board (FSB) Chair Andrew Bailey has sounded the alarm on the risks posed by frontier Artificial Intelligence (AI) models. In a letter to G20 Finance Ministers and Central Bank Governors, Bailey highlighted the potential impact of these advanced AI systems on cyber risk.
The FSB Chair warned that the increasing use of leverage in bond and equity markets is interacting with high valuations, market concentration, and AI-related optimism in a way that could amplify a future market correction. He emphasized the importance of robust response and recovery capabilities among financial institutions and critical third-party providers.
Bailey also noted concerns over energy-driven inflationary pressures exacerbated by the Middle East conflict, leaving markets vulnerable to a potentially disorderly correction that could spread across borders.