Artificial intelligence-driven cyberattacks are becoming the most immediate technology-related threat to global financial stability, according to Financial Stability Board (FSB) Chair Andrew Bailey.
In a letter to G20 finance ministers and central bank governors, Bailey, who is also Governor of the Bank of England, warned that advances in AI could dramatically increase the speed, scale and cost-effectiveness of cyberattacks.
The concern is particularly significant for financial institutions because banks, payment systems and other market infrastructure increasingly depend on shared software, cloud services and technology providers. A single vulnerability could therefore affect multiple institutions at the same time. The IMF has similarly warned that AI-enabled cyber incidents could trigger funding pressures, liquidity problems and broader market disruption.
Bailey also highlighted that many countries do not yet have adequate frameworks for managing the deployment of increasingly advanced AI models. He called for stronger resilience, preparedness and international cooperation to ensure financial institutions can respond to faster and more sophisticated cyber threats.
The Bank of England has previously warned that frontier AI could enable attackers to identify and exploit software vulnerabilities at machine speed, potentially increasing the risk of system-wide disruptions to payments, trading and other critical financial services.
The FSB’s warning adds to growing international concerns that as AI capabilities advance, cybersecurity must remain a central part of financial-sector risk management.
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