G20 urged to act as AI threatens global financial stability

Andrew Bailey warns G20 leaders that advanced AI models are escalating cyber risks and could destabilize global finance, urging stronger regulations and coordinated action.

Andrew Bailey, chair of the Financial Stability Board, has warned G20 finance ministers and central bank governors about growing risks from advanced artificial intelligence models to the global financial system. In his letter, Bailey emphasized that frontier AI models can now identify and exploit cybersecurity vulnerabilities faster than defenders can respond, increasing the likelihood of sophisticated cyberattacks and potential market disruptions. Recent incidents have involved AI technologies from companies such as OpenAI, Anthropic, and Meta being used in cyber intrusions. Authorities are increasingly concerned that many countries lack robust regulatory frameworks to manage the deployment of these advanced AI systems. In response, the European Central Bank has required eurozone banks to submit action plans by October 31. Bailey further warned that simultaneous disruptions at multiple financial institutions or technology providers could severely strain existing financial defenses. He recommended implementing isolated backup systems to improve recovery after catastrophic cyberattacks and called for coordinated international action to address these emerging threats.