The impact of AI on cyber risk is the most immediate concern for the global financial system, a global watchdog said Monday, cautioning that the technology could change the speed, scale and economics of an attack.
Many countries do not have systems in place to manage the deployment of advanced artificial intelligence models, said Andrew Bailey, the chair af the Financial Stability Board, which seeks to identify and manage risks in financial systems.
The warning by Bailey, who also serves as the Bank of England governor, came in a letter to G-20 finance ministers and central bank governors ahead of meetings this week.
The financial sector's dependence on a handful of powerful tech providers could undermine system-wide market confidence, Bailey said.
The comments highlighted concerns among regulators that advanced AI could accelerate the discovery of cyber vulnerabilities, forcing faster patching and creating potential operational and resilience challenges if testing and recovery processes are unable to adapt safely.
