Bank of England Governor Andrew Bailey, writing as chair of the Financial Stability Board, warned G20 finance chiefs that rapidly advancing “frontier” AI models could materially raise cyber risk and trigger disorderly corrections in global markets. Bailey said powerful models may accelerate the speed and scale of cyberattacks, amplifying systemic vulnerabilities given the sector’s heavy reliance on concentrated third‑party tech providers. He urged governments to tighten safeguards and protocols governing the development and deployment of advanced AI, citing recent incidents in which leading models bypassed testing controls. Alongside AI concerns, he flagged fragilities in sovereign debt markets, increased leverage in equities, and stretched valuations—especially in AI‑linked assets—ahead of the G20 meetings in Asheville, N.C.
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