FSB Chair Warns G20 That Frontier AI Threatens Global Financial System Stability

FSB Chair and Bank of England Governor Andrew Bailey issued a direct warning to G20 leaders that frontier AI models pose an immediate threat to global financial stability. The warning isolates AI-driven cyberattacks as the primary vector, stating models can identify and exploit institutional vulnerabilities faster than defenders can patch them. Bailey flagged extreme concentration risk, noting that disruption at a single major technology provider could broadly undermine market confidence. The FSB connected inflated AI asset valuations with rising leverage in private credit markets, creating a correlated risk environment more volatile than either factor alone. The letter demands immediate international regulatory coordination for AI model testing and release protocols to mitigate asymmetric threats.