Bank of England Governor Andrew Bailey warns G20 nations are not fully prepared to manage advanced AI systems.
Image: Business Standards
Artificial intelligence-driven cyber threats have emerged as a major concern for global financial stability, with regulators warning that rapid advances in AI are creating risks that financial systems may not yet be equipped to handle.
Bank of England Governor Andrew Bailey has warned G20 countries that they lack adequate systems to manage the deployment of increasingly advanced AI models.
The growing use of AI in financial services could improve efficiency and innovation, but it may also expose banks and markets to sophisticated cyberattacks, fraud and other vulnerabilities.
Bailey urged governments and financial authorities to strengthen safeguards and coordinate internationally to ensure AI development does not outpace the ability of regulators to manage emerging risks.
The warning comes as financial institutions around the world accelerate their adoption of AI, increasing pressure on policymakers to establish stronger protections against potential threats to global economic stability.
