Andrew Bailey, chair of the Financial Stability Board and governor of the Bank of England, issued a warning to G20 finance ministers and central bank governors on August 31, 2026, regarding the risks of frontier AI models to global financial stability. ^[1] Andrew Bailey, president of the Financial Stability Board (FSB), stated that the impact of artificial intelligence on cyber risk is the most immediate concern for the global financial system. ^[2] Bailey stated that frontier AI models are advancing faster than the safeguards governing their development and deployment, creating a risk landscape complicated by their growing autonomy and problem-solving capacity. ^[3] Recent models released by OpenAI, Anthropic, and Meta Platforms have reportedly used the internet to hack outside organizations, demonstrating the potential for AI systems to discover previously unknown vulnerabilities. ^[4] The FSB chair urged financial regulators to push artificial intelligence safety controls further upstream, ensuring developers have adequate testing, security, and release protocols before highly capable systems become widely available. ^[5] Bailey stated that the cyber risk posed by AI is the most immediate concern for the global financial system because frontier models can materially alter the speed, scale, and economics of cyber risk. ^[6] The Governor of the Bank of England wrote that financial institutions and technology providers must strengthen vulnerability management and prepare for severe scenarios involving simultaneous disruption across multiple firms or shared technology dependencies. ^[7] Bailey noted that the rest of the document focuses on large language models' ability to launch cyberattacks due to interconnected financial systems. ^[8] Andrew Bailey added that the financial sector's dependence on a handful of powerful technology providers could undermine systemic market confidence. ^[9] Andrew Bailey warned that artificial intelligence could alter the speed, magnitude, and economic aspects of a cyberattack. ^[10] In a letter to G20 finance ministers and central bank governors, Andrew Bailey noted that many countries lack systems to manage the deployment of advanced AI models. ^[11] Bailey recommended that companies establish 'bare-metal' backup systems completely isolated from external networks to prepare for scenarios where multiple firms are paralyzed simultaneously. ^[12]