{"id":1178581,"date":"2026-08-31T06:56:20","date_gmt":"2026-08-31T06:56:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/1178581\/"},"modified":"2026-08-31T06:56:20","modified_gmt":"2026-08-31T06:56:20","slug":"advanced-ai-threatens-global-financial-stability-says-bank-of-england-boss-global-economy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/1178581\/","title":{"rendered":"Advanced AI threatens global financial stability, says Bank of England boss | Global economy"},"content":{"rendered":"

The Bank of England\u2019s governor, Andrew Bailey<\/a>, has joined the throng of figures warning about the global risks posed by the most advanced artificial intelligence technology.<\/p>\n

In a two-page letter sent to international finance ministers and central bank governors as part of his role as chair of the international Financial Stability Board (FSB), Bailey said \u201cfrontier\u201d AI models were \u201cshowing increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities\u201d.<\/p>\n

He said the models risked destabilising the \u201chighly interconnected\u201d global financial system via cyber-disruption that \u201ccan spread across jurisdictions\u201d.<\/p>\n

Bailey wrote to G20<\/a> finance ministers and central bank governors before their meeting in North Carolina, US, this week: \u201cRecent developments have also highlighted to me that many jurisdictions do not have the protocols in place to manage the development, release, and deployment of advanced frontier AI models, heightening risks for the financial sector and beyond\u201d.<\/p>\n

His letter adds to alarm bells about AI that have been sounded by prominent technologists over the past few weeks \u2013 and mirrors his previous calls for international cooperation to tackle growing AI threats<\/a>, when he told City bosses: \u201cNo country can seal itself off from the cross-border nature of systems that are prevalent today.\u201d<\/p>\n

Andrew Bailey has raised concerns about high valuations in the AI markets. Photograph: Christian Ohde\/Alamy<\/p>\n

Last month, a letter signed by 1,367 researchers and engineers at frontier AI labs \u2013 mainly OpenAI, Anthropic and Google DeepMind \u2013 also shone a light on the concerns of the engineers working on the technology every day.<\/p>\n

It stated: \u201cThere is a real risk that capability development rapidly accelerates beyond our ability to understand or control the resulting systems<\/a>,\u201d before going on to ask for the US government\u2019s support for \u201can international effort to develop the technical and governance tools needed to deliberately pace the frontier of automated AI development\u201d.<\/p>\n

Earlier this month, it also emerged that OpenAI staff observed signs of rogue behaviour among its cutting-edge AI agents<\/a> weeks before they escaped their training environment to launch an unprecedented hacking crusade that spread global alarm.<\/p>\n

Extending this theme into the world of financial policy, Bailey continued: \u201cFor the financial system, the most immediate concern is the potential impact of frontier AI on cyber-risk. Frontier AI may have the ability materially to alter the speed, scale and economics of cyber-risk, which could undermine market confidence system-wide, especially due to highly concentrated third-party service providers.\u201d<\/p>\n

Bailey called on those tasked with safeguarding the world\u2019s financial systems to prioritise \u201cappropriate steps to support safe and responsible model release and deployment on a global basis\u201d.<\/p>\n

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The letter also noted Bailey\u2019s concerns about the increased use of leverage in bond and equity markets, which he said was combining with high valuations in concentrated financial markets \u2013 particularly fuelled by investor optimism about the prospects of AI \u2013 in a way that could amplify a future market correction.<\/p>\n

\u201cI remain concerned therefore that a large shock or combination of shocks could concurrently trigger multiple vulnerabilities,\u201d Bailey wrote.<\/p>\n

Bailey has been governor of the Bank of England<\/a> since March 2020, and previously headed both the Financial Conduct Authority and the Prudential Regulation Authority, the UK\u2019s two main financial regulators. He was appointed chair of the FSB<\/a> last year.<\/p>\n

The FSB, based in Basel, Switzerland, coordinates the work at international level of national financial authorities and international standard-setting bodies in an effort to develop effective regulation and policies in the interest of financial stability.<\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of England\u2019s governor, Andrew Bailey, has joined the throng of figures warning about the global risks…\n","protected":false},"author":2,"featured_media":1178582,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[2],"tags":[13,12,14],"class_list":["post-1178581","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-headlines","tag-news","tag-top-stories"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1178581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1178581"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1178581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1178582"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1178581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1178581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1178581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}