Bank of England Governor Warns AI Models May Intensify Financial Crisis Risks

Bank of England Governor Andrew Bailey warned G20 finance ministers and central bank governors that cybersecurity risks posed by cutting-edge AI models could resonate with vulnerabilities such as high inflation, high interest rates, and financial market leverage, increasing the risk of severe shocks to the global financial system. Bailey pointed out that if multiple financial institutions or shared technology providers experience systemic disruptions simultaneously, the existing financial defense systems will face severe challenges. At the same time, the capabilities of AI-driven cyberattacks and identity deception are rapidly increasing, and some countries have yet to establish mature regulatory frameworks to address the development, release, and deployment of cutting-edge AI models. Bailey also mentioned that the overvaluation driven by the AI boom, debt pressures in sovereign and private credit sectors, and the ongoing accumulation of market leverage could become potential factors triggering disorderly adjustments in financial markets. He suggested that financial institutions deploy bare-metal backup systems physically isolated from the main network to enhance recovery capabilities after catastrophic cyberattacks.

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