Governor of the Bank of England, Andrew Bailey has warned G20 finance ministers and central bank governors of an increased threat to global financial stability arising from advanced artificial intelligence, particularly from cyber-attacks, the Financial Times.
It noted a “more immediate concern” for the financial system was the “frontier impact of artificial intelligence on cyber risk.” “A greater pace and magnitude of impact from cyber-attacks could ‘erode market confidence.”
Bailey urged regulators to ensure a “safe and orderly roll-out and use of frontier AI” and urged the finance sector to “upgrade its capacity for major cyber-related shock response and recovery.”
Bailey cautioned that financial markets are already reeling from overvalued assets, high levels of leverage and risks in sovereigns and private credit markets and stated that “the effect of both AI-related optimism and market concentration risk a future correction to fall further than could otherwise be expected.
“The Financial Stability Board said that while the economic benefit of AI was considered greater than financial risks, “many country regimes are failing to manage the rollout of frontier AI” and urged greater co-operation.
