Bailey Warns G20 That Frontier AI Could Amplify Global Financial Shocks
Financial Stability Board chair Andrew Bailey has urged international coordination on frontier AI, warning that cyber disruption, concentrated technology providers and stretched markets could transmit shocks across the global financial system.
In short
- Financial Stability Board chair Andrew Bailey has urged international coordination on frontier AI, warning that cyber disruption, concentrated technology providers and stretched markets could transmit shocks across the global financial system.
Andrew Bailey, chair of the Financial Stability Board and governor of the Bank of England, has warned G20 finance ministers and central bank governors that advanced artificial intelligence models could create risks for the global financial system.
In a letter sent before a G20 meeting in North Carolina, Bailey said so-called frontier AI systems are developing greater autonomy, problem-solving ability and potential threat capabilities. He identified cyber risk as the most immediate concern for finance, arguing that AI could change the speed, scale and cost of cyberattacks and allow disruption to spread across borders.
Bailey also warned that many jurisdictions lack protocols governing the development, release and deployment of advanced models. He called for coordinated international steps to support safer model releases and use, noting that financial markets and technology services are highly interconnected.
The warning extends beyond cybersecurity. Bailey said elevated valuations and increased leverage in bond and equity markets could combine with concentrated investor optimism around AI to amplify a market correction if a major shock occurs.
The Financial Stability Board, based in Basel, coordinates national regulators and international standard-setting bodies on policies intended to protect global financial stability. Bailey has chaired the board since 2025 and has served as Bank of England governor since March 2020.
