Bank of England chief warns new AI models threaten global financial stability

Andrew Bailey, governor of the Bank of England (BOE), during a Bloomberg Television interview at the Reykjavik Economic Conference in Reykjavik, Iceland, on Friday, May 29, 2026. Betty Laura Zapata | Bloomberg | Getty ImagesThe growing threat posed by advanced artificial intelligence models could trigger a disorderly correction in global financial markets, according to Bank of England Governor Andrew Bailey.In a two-page letter published Monday to G20 finance ministers and central bank governors, Bailey said the emergence of so-called "frontier AI models" is showing "increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities."Writing in his capacity as chair of the Financial Stability Board, an international body that coordinates policy and makes recommendations to national authorities, Bailey identified the potential impact of frontier AI — which refers to the most advanced AI models — on cyber risk as "the most immediate concern" for the financial system. "Frontier AI may have the ability materially to alter the speed, scale and economics of cyber risk, which could undermine market confidence system-wide, especially due to highly concentrate...