Bank of England governor Andrew Bailey warned G20 finance ministers and central bank governors that frontier AI models pose increasing cyber security risks to the financial system, potentially triggering market meltdowns. In his letter, Bailey emphasized that financial services companies and technology groups must prepare for severe scenarios involving simultaneous disruption across multiple firms or shared technology dependencies. He urged more countries to introduce controls on AI technology release, appearing to press the US to reconsider its hands-off regulatory approach.

Bailey called for financial groups to develop 'bare metal' backup systems disconnected from main networks to restore operations after major cyber attacks. The FSB is examining how AI models can be safely deployed by financial firms to improve resilience to cyber threats.