Global Financial Watchdog Warns AI Cyber Risk Is Top Threat to Financial Stability

The head of the Financial Stability Board has warned that artificial intelligence-driven cyberattacks now represent the most immediate threat to the global financial system.

FSB Chair Andrew Bailey said AI could dramatically increase the speed, scale and economics of cyberattacks, potentially allowing threats to develop faster than financial institutions and regulators can respond.

Warning Sent to G20 Leaders

Bailey issued the warning in a letter to G20 finance ministers and central bank governors ahead of meetings this week.

He also raised concerns that many countries still lack adequate systems for overseeing the deployment of advanced AI models.

The global watchdog warned that the financial sector’s dependence on a small number of major technology providers could create additional risks and undermine confidence if a major disruption or cyberattack occurs.