Bank of England governor warns AI black swan: cutting-edge models may amplify financial crisis risks

Bailey, Governor of the Bank of England and Chairman of the Financial Stability Board (FSB), warned G20 finance ministers and central bank governors that the cybersecurity risks brought by cutting-edge AI models may be related to existing vulnerabilities such as high inflation, high interest rates and financial market leverage. The resonance of vulnerability further raises the risk of a serious impact on the global financial system. Bailey pointed out that if multiple financial institutions or shared technology providers suffer systemic outages at the same time, the existing financial defense system may face severe tests. At the same time, AI-driven cyber attacks, false identity fraud and other capabilities are rapidly increasing, and some countries have not yet established a mature regulatory framework for the development, release and deployment of cutting-edge AI models. Bailey also warned that high valuations driven by the AI boom, debt pressures in the sovereign and private credit sectors, and accumulated market leverage could all become potential triggers for "disorderly adjustments" in financial markets. He recommended that financial institutions deploy "bare metal" backup systems that are physically isolated from the main network to improve resilience after a catastrophic cyber attack.