Financial Stability Board Chair Andrew Bailey said on Monday that the impact of AI on cyber risk was the most immediate concern for the global financial system, saying \u200bthe technology could change the speed, scale and economics of an attack.<\/p>\n
The \u200bFSB is a global watchdog that seeks to identify and manage \u2060risks in financial systems.<\/p>\n
In a letter to G20 finance ministers and central \u200bbank governors ahead of meetings this week, Bailey, who also serves as the Bank \u200bof England governor, said many countries do not have systems in place to manage the deployment of advanced artificial intelligence models.<\/p>\n
The financial sector’s dependence on a handful of powerful tech providers could undermine \u200bsystem-wide market confidence, he added.<\/p>\n
Read More:<\/strong>\u00a0EU subjects ChatGPT, Reddit, Roblox to stricter oversight under Digital Services Act<\/a><\/p>\n The comments highlighted concerns among regulators that advanced AI \u200bcould\u00a0accelerate the discovery of cyber vulnerabilities, forcing faster patching<\/a>\u00a0and creating potential operational and resilience \u200cchallenges \u2060if testing and recovery processes are unable to adapt safely.<\/p>\n His comments follow the\u00a0US administration’s tightly controlled\u00a0<\/a>rollout<\/a>\u00a0of Anthropic\u2019s powerful Mythos model, restricting it at one point to only US nationals.<\/p>\n \u201cRecent developments highlight the importance of ensuring that advances in \u200bcapability are matched by \u200bresilience and preparedness,\u201d \u2060he said.<\/p>\n Supporting safe and responsible model release \u201con a global basis\u201d should be a priority, he said.<\/p>\n In July, an OpenAI \u200bagent\u00a0escaped a controlled testing environment<\/a>\u00a0and hacked AI company Hugging \u200bFace, raising concerns about \u2060the potential for AI systems to circumvent safeguards.<\/p>\n Bailey reiterated prior warnings about the risk of potential market corrections, citing stretched AI valuations and frailties in government debt markets, while \u2060flagging \u200bas an emerging concern the increase in the \u200buse of leverage in equity markets. The US Treasury earlier this month intervened to\u00a0cap yields<\/a> on long-term \u200bbonds that had reached multi-decade highs.<\/p>\n","protected":false},"excerpt":{"rendered":" Financial Stability Board Chair Andrew Bailey said on Monday that the impact of AI on cyber risk was the most immediate concern for the global financial system, saying \u200bthe technology could change the speed, scale and economics of an attack. The \u200bFSB is a global watchdog that seeks to identify and manage \u2060risks in financial …<\/p>\n","protected":false},"author":1,"featured_media":5551,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/5550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5550"}],"version-history":[{"count":1,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/5550\/revisions"}],"predecessor-version":[{"id":5552,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/posts\/5550\/revisions\/5552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=\/wp\/v2\/media\/5551"}],"wp:attachment":[{"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistantimesusa.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}