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Bank of England governor warns frontier AI could destabilize finances
In a two-page letter to G20 finance ministers and central bank governors, Andrew Bailey warned gaps in protocols for frontier AI development and deployment could heighten risks for the financial sector and beyond.
Bank of England Governor Andrew Bailey has warned that frontier artificial intelligence models, with increasingly sophisticated autonomy and problem-solving abilities, could destabilize the highly interconnected global financial system.
In a two-page letter to G20 finance ministers and central bank governors ahead of their meeting in North Carolina, Bailey said the main near-term concern is cyber-risk, arguing frontier AI could change the speed, scale, and economics of cyber threats and undermine market confidence system-wide.
Bailey also warned that many jurisdictions do not have protocols in place to manage the development, release, and deployment of advanced frontier AI models, which he said heightens risks for the financial sector and beyond.
According to the Guardian, Bailey, who is chair of the international Financial Stability Board, urged financial-system policymakers to prioritize appropriate steps to support safe and res
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