Bank of England Governor Andrew Bailey has identified frontier AI models as a significant driver of cyberattack risks. He argues that these systems increase the speed, scale, and cost-efficiency of attacks while lowering the barrier to entry by automating tasks previously requiring human expertise.
Data cited by the Bank of England indicates that as of May 15, 2026, frontier AI models demonstrated cyberattack capabilities exceeding those of skilled human professionals. This assessment includes an April 2026 evaluation of the cyber capabilities of OpenAI's GPT-5.5.
Bailey, who also chairs the Financial Stability Board, is advocating for mandatory rigorous testing of AI models both before and after their release. He further proposed establishing a societal right to intervene in the deployment of such technologies to protect market integrity.
Beyond cybersecurity, the Bank of England has linked AI to broader financial stability concerns. Projections from 2026 suggest that AI-driven debt growth could exceed $450 billion by early September 2026, prompting calls for adaptive regulatory frameworks.
The Bank of England, the Financial Conduct Authority, and HM Treasury have issued a joint statement urging financial firms to enhance cyber resilience, specifically focusing on detection, containment, and recovery capabilities.
