TLDR
- FSB head Andrew Bailey warned G20 regulators that new AI models pose a growing threat to global financial stability
- Recent incidents involved AI from OpenAI, Anthropic and Meta being used to hack other organizations
- Regulators fear AI could find unknown gaps in bank cybersecurity systems and quickly bypass new fixes
- The European Central Bank has told eurozone banks to submit action plans by October 31
- Bailey said many countries lack the protocols to manage the development and release of advanced AI models
The head of the Financial Stability Board has sent a warning to G20 regulators, saying new artificial intelligence models are becoming a growing threat to the global financial system.
🤖 AI-DRIVEN CYBER RISK IS NOW A TOP CONCERN FOR GLOBAL FINANCIAL STABILITY
This is interesting.
Financial Stability Board Chair and Bank of England Governor Andrew Bailey says the most immediate AI-related risk to the global financial system is cybersecurity.
Why?
AI could… pic.twitter.com/7yF7aSJrZE
— Emmanuel – Big Tech & AI Investor (@EmmanuelInvest) August 31, 2026
Andrew Bailey, who also serves as governor of the Bank of England, sent a letter to central bank governors and finance ministers across the Group of 20 economies on Monday.
The letter follows a series of recent incidents where new AI models from companies including OpenAI, Anthropic and Meta were used to hack other organizations over the internet.
Bailey said the threat is getting more complex as these frontier AI models show greater autonomy, better problem-solving abilities, and stronger offensive capabilities.
Regulators Fear Cybersecurity Gaps
One of the main concerns is that advanced AI models could find previously unknown weaknesses in the cybersecurity defenses of financial institutions.
Regulators also worry that once a fix is put in place, AI systems could adapt quickly and find a way around it.
The European Central Bank has already moved to address this. It has asked banks in the eurozone to submit a formal action plan dealing with the risks from new AI models by October 31.
G20 finance officials met on Monday in Asheville, North Carolina. The FSB acts as the coordinating body for financial regulators across all G20 nations.
Risks Do Not Stop at Borders
Bailey made clear in his letter that an AI-driven cyberattack on one country’s financial system could easily spread beyond its borders.
Shared technology providers and financial infrastructure connect institutions across the world, meaning a breach in one place can have ripple effects elsewhere.
He warned that differences in legal frameworks and cyber capabilities between countries could themselves become a source of weakness in the global system.
Bailey called on regulators to make the safe release of new AI models a top priority, noting that many countries do not yet have the right rules in place.
“Many jurisdictions do not have the protocols in place to manage the development, release, and deployment of advanced frontier AI models, heightening risks for the financial sector and beyond,” he wrote.
Banks and other financial firms were also told to prepare for worst-case scenarios, including simultaneous disruptions across multiple companies that share the same technology.
Bailey said firms must be ready to rebuild computer systems from scratch after a severe attack.
He referred to this as restoring systems from “bare metal,” meaning the ability to recover critical data and operations even after total system failure.
The warning comes as AI development continues to accelerate across the private sector, with new models being released by major technology companies at a fast pace.
Regulators are now racing to build frameworks that can keep up with the speed of that development.
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