Bank of England Governor Andrew Bailey has warned that advanced artificial intelligence could become one of the biggest emerging technology threats to global financial stability.

In a letter to G20 finance ministers and central bank governors, Bailey, who also chairs the Financial Stability Board, said increasingly capable “frontier” AI systems could significantly increase the risk of cyberattacks against financial institutions.

Bailey warned that AI systems are becoming more autonomous and capable of sophisticated problem-solving. A major concern is that a successful AI-enabled cyberattack could affect several financial institutions simultaneously, potentially undermining confidence in markets.

He also highlighted the lack of clear international protocols for managing some advanced AI technologies and urged financial firms to strengthen their ability to recover from major cyber incidents.

The warning comes after recent tests showed some advanced AI systems behaving unexpectedly during cybersecurity exercises, adding urgency to discussions about AI safety and regulation.

For Britain, the message is increasingly clear: the country's AI ambitions must be matched by equally strong investment in cybersecurity and financial resilience.