Andrew Bailey, Governor of the Bank of England and chair of the Financial Stability Board, warned G20 finance ministers on August 28 that advanced "frontier" AI models could trigger a disorderly correction in global markets. In a letter ahead of the G20 meeting in Asheville, North Carolina, he flagged "stretched asset valuations" in the AI sector and rising debt tied to circular investment deals between AI companies and hyperscalers.
Bailey said his most immediate concern is cyber risk: frontier AI could make attacks faster, cheaper and more scalable, and a single breach could ripple across banks that rely on the same third-party tech providers. He cited Anthropic's Mythos model, unveiled in April 2026 and restricted from public release over its autonomous coding and hacking capabilities, as an example of the risk.
The Financial Stability Board is urging regulators worldwide to prepare for a higher volume of vulnerabilities, speed up patching, and build "bare metal" recovery workflows in case of multi-institution cyberattacks. "AI will not respect national borders," Bailey wrote, calling for globally coordinated, responsible AI deployment.