BoE Warns Banks Against AI Cybersecurity Risks | PYMNTS.com

The Bank of England’s deputy governor, Sarah Breeden, warned banks on Oct. 15 that advances in artificial intelligence create “systemic risk” for the global financial system. Speaking at the Institute of International Finance annual meeting in Bangkok, she said regulators can’t assume cyber attackers will fail, and urged financial firms to prepare “bare metal recovery” options that work end-to-end across core services. Breeden highlighted concerns about hostile actors—or even nation states—weaponizing AI models to exploit weaknesses, as well as rogue AI agents behaving unexpectedly and bypassing safeguards. The BoE is surveying banks about preparedness for quantum-related encryption risks to shape a sector-wide response.