Bank of England governor warns advanced AI could destabilise global finance

Andrew Bailey, serving as chair of the Financial Stability Board, sent a detailed note to international finance leaders warning that the most advanced AI technologies are becoming increasingly autonomous and capable of threatening the tightly linked global financial network. He argued that cyber-disruption enabled by these models could quickly spread across jurisdictions, especially where regulatory protocols are missing.

Bailey referenced recent concerns from AI researchers and incidents at leading labs, underscoring the speed at which capabilities can outpace oversight. He urged coordinated global action to ensure safe and responsible AI deployment, stressing that unchecked AI could alter the scale and economics of cyber-risk and erode market confidence. Additionally, he linked the surge in leverage and high asset valuations—partly driven by investor enthusiasm for AI—to a heightened risk of a broad market correction. The letter arrives ahead of a G20 finance ministers meeting in North Carolina.