As the world marches towards open-weight, efficient, unrestricted frontier AI models out of China, Western leaders are starting to panic over the lack of guardrails. Most recently, Bank of England Governor Andrew Bailey suggested that the threat posed by AI could lead to a chaotic correction in global financial markets, as frontier models are now showing "increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities."
Governor of the Bank of England Andrew Bailey addresses the media during a press conference concerning interest rates, at the Bank of England, in London, Britain, November 2, 2023. HENRY NICHOLLS/Pool via REUTERS"Financial institutions, financial market infrastructures, and technology providers will therefore need to strengthen vulnerability management, response and recovery capabilities, and prepare for more severe scenarios involving simultaneous disruption across multiple firms or shared technology dependencies," Bailey wrote in a two-page letter published Monday to G20 finance ministers and central bank governors in his capacity as chair of the Financial Stability Board - an international body that coordinates international policy and provides recommendations to national authorities.
Bailey says the cyber risk posed by AI is "the most immediate concern" for the global financial system.
"Frontier AI may have the ability materially to alter the speed, scale and economics of cyber risk, which could undermine market co
