The Financial Stability Board published a letter from Chair Andrew Bailey to G20 finance ministers and central bank governors warning that frontier artificial intelligence models could intensify cyber risk as their autonomy, problem-solving abilities and threat capabilities increase. Bailey called on jurisdictions to support safe and responsible model releases and deployment, and urged financial institutions to maintain robust response and recovery capabilities and ensure resilience among critical third-party technology providers and other common service providers. The letter also warned that rising leverage in equity markets, combined with stretched valuations, market concentration and AI-related optimism, could amplify a future market correction. Broader vulnerabilities include energy-driven inflationary pressures linked to the Middle East conflict, sovereign debt fragilities and private credit risks. The FSB is examining steps within its mandate and expertise to address these challenges.
2026-08-31Financial Stability Board
Financial Stability Board chair warns of cyber risks from frontier AI models
Financial Stability Board Chair Andrew Bailey warned that frontier AI models could intensify cyber risk and called for safe model deployment, robust financial-sector recovery capabilities and resilient critical technology providers. He also cautioned that rising leverage, stretched valuations, market concentration and AI-related optimism could amplify a market correction.