The chairman of the Financial Stability Board has issued an urgent warning to G20 financial authorities, saying emerging artificial intelligence technologies pose a growing threat to global economic infrastructure.

Key Takeaways

• Andrew Bailey, FSB chairman, warned G20 financial leaders about escalating risks from advanced AI systems to worldwide banking stability
• Multiple recent breaches involved AI technologies from OpenAI, Anthropic, and Meta being exploited for cyber intrusions
• Financial authorities are concerned AI systems may discover previously undetected vulnerabilities in banking defenses and rapidly circumvent patches
• The European Central Bank has mandated eurozone financial institutions deliver response strategies by October 31
• Bailey said many countries still lack adequate frameworks to govern the deployment of advanced AI models

In his dual role as Governor of the Bank of England, Andrew Bailey sent his concerns in a letter to finance ministers and central bank governors across the Group of 20 nations on Monday.

His message comes amid several documented cases in which advanced AI technologies developed by OpenAI, Anthropic, and Meta were used to carry out cyber intrusions against institutions over the internet. According to Bailey, the risk is rising as these systems show greater autonomy, stronger analytical capabilities and more effective attack techniques.

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 \u0026 AI Investor (@EmmanuelInvest) August 31, 2026

Financial Authorities Express Deep Cybersecurity Concerns

Regulators are especially worried that sophisticated AI systems could uncover previously unknown weaknesses in financial-sector defenses. Supervisory authorities are also concerned that AI tools could quickly adapt and work around protective measures even after security patches are deployed.

The European Central Bank has already moved in response. Banking institutions operating in the eurozone have been told to submit detailed response plans for threats posed by emerging AI technologies by October 31.

Financial leaders from G20 member states met on Monday in Asheville, North Carolina. The Financial Stability Board serves as the main coordination body for banking supervisors across all G20 member countries, which gives Bailey’s warning added weight for firms that rely on cross-border systems and shared vendors.

Cross-Border Financial Vulnerabilities

In his letter, Bailey said an AI-enabled cyberattack on one country’s banking infrastructure could quickly spread across borders. The close links between technology vendors and financial networks mean that a compromise in one jurisdiction can trigger wider international consequences.

He added that differences in regulatory frameworks and cybersecurity readiness between countries may themselves create vulnerabilities in the global financial system.

Bailey urged financial supervisors to focus on secure deployment standards for emerging AI technologies, noting that many jurisdictions still lack the appropriate regulatory structure.

“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 financial service providers were also told to prepare contingency plans for severe scenarios, including coordinated disruptions affecting multiple organizations that rely on shared technological infrastructure.

Bailey said institutions must be able to rebuild computing infrastructure completely after a major cyber incident. He described that capability as rebuilding from “bare metal,” meaning the ability to recover essential information and restore operations after total system compromise.

The warning comes as AI development continues to accelerate across the commercial technology sector, with major companies releasing new models at rapid speed. For financial authorities, that pace is part of the challenge: oversight, incident response and resilience planning all have to keep up with tools that can change faster than existing supervisory frameworks in many countries.