Financial Watchdog Warns G20 of Cyberattacks Enabled by Advanced AI

Advanced artificial intelligence models could change the speed, scale and cost of cyberattacks against the global financial system, Financial Stability Board President Andrew Bailey warned in a letter to G20 finance ministers and central bank governors.

“The risk landscape has become even more complex with the emergence of frontier AI models,” Bailey wrote. He said the risks associated with advanced AI would not respect national borders, making them a concern for governments and financial institutions meeting in Asheville, North Carolina.

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The risk landscape has become even more complex with the emergence of frontier AI models.

The G20 finance ministers and central bank governors are gathering under the United States’ presidency to discuss global economic and financial conditions. The Financial Stability Board, created by the G20 in 2009 after the financial crisis, monitors the international financial system and alerts authorities to emerging risks.

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The risks associated with frontier AI will not respect national borders.

Bailey, who also serves as governor of the Bank of England, said advanced models have growing autonomy and stronger abilities to solve problems and detect threats. Their misuse could nevertheless increase cyber risks and undermine confidence across the financial system. The danger is greater because financial services rely heavily on a concentrated group of external providers.

Cyber disruptions can move from one country to another through shared technology suppliers, common infrastructure and cross-border financial activity. Bailey called on companies and authorities to prepare for larger and faster attacks and to ensure they can safely recover from major failures. The Financial Stability Board wants financial firms to deploy advanced AI securely and improve their capacity to restore critical systems and data from scratch after a serious cyberattack. Bailey also warned that many countries still lack the protocols needed to manage advanced AI deployment safely.

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Frontier AI can substantially alter the speed, scale and economics of cyber risk, which could undermine market confidence across the system, especially because of the high concentration of external service providers.