AI POSES GLOBAL FINANCIAL RISK, WARNS BANK OF ENGLAND

Bailey's warning adds to growing concerns from policymakers about frontier AI technology. The letter, sent in his role leading the FSB, highlighted how increasingly advanced AI models could destabilize financial systems through coordinated cyber attacks that transcend national borders. The Bank of England chief joins other prominent figures expressing caution about AI's potential to disrupt critical infrastructure. Financial regulators have identified cyber-resilience as a key vulnerability, particularly as AI capabilities expand. Bailey's message underscores the FSB's focus on systemic risks posed by emerging technologies. The board coordinates financial regulation across major economies and works to prevent crises that could spread globally. The warning signals that central banks are prioritizing AI governance alongside traditional financial oversight. Policymakers are increasingly viewing frontier AI as requiring the same regulatory attention as other systemic risks to the financial system.