Financial Watchdog Calls for Global Action on AI Cyber Risks
Financial watchdog urges global action to tackle growing AI cyber risks.
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The Financial Stability Board (FSB), the international watchdog responsible for monitoring the global financial system, has joined calls for coordinated international action to tackle the growing cyber security risks posed by artificial intelligence.
In a letter to central bankers and G20 finance ministers, FSB chair Andrew Bailey warned that the threat posed by frontier AI models is increasing, while governments and financial institutions are not adequately prepared for the potential consequences. Bailey, who is also Governor of the Bank of England, urged policymakers to introduce stronger controls and safeguards for advanced AI models amid growing concerns about their potential impact on the financial sector and the wider economy.
The FSB said the rapid development of AI was creating new risks that could cross national borders and financial markets, making international cooperation increasingly important. The warning comes as governments and technology companies face mounting pressure to strengthen cyber security measures as AI systems become more capable and widely deployed. It follows calls from a group of major technology companies last week for collective action on cyber security, highlighting growing concern across the industry about the risks associated with increasingly sophisticated AI systems.
Bailey’s intervention adds the voice of a major global financial regulator to those calls, increasing pressure on governments to establish common safeguards for frontier AI models. The FSB’s warning also reflects concerns that vulnerabilities in AI systems could have consequences beyond individual companies, potentially creating risks for financial institutions and broader economic stability. As AI development accelerates, policymakers are increasingly considering how to balance the technology’s potential economic benefits with safeguards designed to prevent cyber attacks, financial disruption and other systemic risks.
The Financial Stability Board (FSB), the international watchdog responsible for monitoring the global financial system, has joined calls for coordinated international action to tackle the growing cyber security risks posed by artificial intelligence.
In a letter to central bankers and G20 finance ministers, FSB chair Andrew Bailey warned that the threat posed by frontier AI models is increasing, while governments and financial institutions are not adequately prepared for the potential consequences. Bailey, who is also Governor of the Bank of England, urged policymakers to introduce stronger controls and safeguards for advanced AI models amid growing concerns about their potential impact on the financial sector and the wider economy.
The FSB said the rapid development of AI was creating new risks that could cross national borders and financial markets, making international cooperation increasingly important. The warning comes as governments and technology companies face mounting pressure to strengthen cyber security measures as AI systems become more capable and widely deployed. It follows calls from a group of major technology companies last week for collective action on cyber security, highlighting growing concern across the industry about the risks associated with increasingly sophisticated AI systems.
