Bank of England Governor Warns AI Cyber Risk Threatens Financial Stability

Bank of England Governor Andrew Bailey has warned that advanced artificial intelligence systems pose the most immediate threat to the global financial system by dramatically increasing the speed, scale, and cost of cyberattacks. In a letter to G20 finance ministers and central bank governors ahead of their meetings in North Carolina this week, Bailey, who also chairs the Financial Stability Board, outlined how "frontier AI" models could materially alter cyber risk, potentially undermining market confidence systemwide. Bailey emphasized that the financial sector's heavy reliance on a small number of technology providers creates a concentrated vulnerability.