Bank of England's Bailey warns G20 on AI risks to global finance

August 31, 2026 at 08:57 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Bank of England Governor Andrew Bailey warned G20 finance ministers and central bank governors about growing risks from advanced artificial intelligence models. He said such technologies could amplify cyber threats and leave the global financial system vulnerable to major disruptions. Bailey raised the issue in his capacity as chair of the Financial Stability Board.

Key Facts

Andrew Bailey is chair of the Financial Stability Board and raised the AI warning in that role.
Bailey said AI could significantly change the speed, scale, and cost of cyberattacks.
A petition warning about rapid AI development was signed by 1,367 researchers and engineers from OpenAI, Anthropic, and Google DeepMind.
Bailey called on financial regulators to develop common approaches for safely launching and using advanced AI models.

Cyber Threat Amplification

Bailey identified cybersecurity as one of the main dangers for the financial sector. He said artificial intelligence could significantly change the speed, scale, and cost of cyberattacks. The interconnectedness of the global financial system could worsen the situation. A failure at a major technology or infrastructure service provider could affect companies and markets in several countries within a short time.

Regulatory Gaps and Market Risks

Bailey noted that many countries still lack clear and unified rules for developing, launching, and deploying the most powerful AI models. He also addressed conditions in financial markets. High valuations of AI-related companies, growth in leveraged positions, and concentration of capital in certain assets could amplify the consequences of a future market correction. Bailey wrote that he remains concerned that a major shock or several simultaneous shocks could trigger multiple vulnerabilities at once.

Developer Concerns and Regulatory Call

In recent weeks, developers themselves have expressed concern about the development of the most powerful AI systems. According to The Guardian, 1,367 researchers and engineers from OpenAI, Anthropic, and Google DeepMind signed a warning about the potential dangers of overly rapid AI development. Bailey called on financial regulators to develop common approaches for safely launching and using advanced AI models.