Financial Stability Board Chair Andrew Bailey, who is also governor of the Bank of England, warned G20 finance ministers and central bankers that emerging frontier AI models pose a growing threat to financial stability and economic growth. In a letter dated August 28 ahead of meetings on August 31 and September 1 in Asheville, North Carolina, Bailey said the FSB will remain focused on identifying emerging vulnerabilities, strengthening resilience and ensuring innovation is consistent with financial stability, noting that many jurisdictions still lack sufficient protocols for advanced model development, release and deployment. He wrote that frontier AI may materially alter the speed, scale and economics of cyber risk and could undermine market confidence system-wide, especially because of highly concentrated third-party service providers and cross-border interconnections. Bailey pointed to a new generation of systems able to identify and exploit digital vulnerabilities in banking infrastructure and other sensitive servers, citing Anthropic’s Mythos model—unveiled in April 2026 with advanced autonomous coding and cybersecurity capabilities and withheld from public use because of significant potential risks—and related reports that Mythos found flaws in classified U.S. systems within hours. He stressed that AI will not respect national borders, so differences in legal frameworks, cyber capability, resilience and recovery capacity across jurisdictions could themselves become sources of vulnerability with global impact, and he urged firms and authorities to prepare for a higher volume of vulnerabilities and a faster pace of patching. The warning lands amid Middle East conflict lifting energy prices and inflation, large-scale U.S. AI investments adding further inflationary pressure, and unpredictable trade decisions by U.S. President Donald Trump. Bailey said supporting safe and responsible model release and deployment on a global basis should be a priority that would benefit all sectors, including financial stability and economic growth. Industry leaders have echoed the concern: CrowdStrike CEO George Kurtz said AI agents increasingly operate outside intended limits at scale, while Rubrik CEO Bipul Sinha warned autonomous agents can use vulnerability chaining to breach systems at machine speed. The European Central Bank has instructed eurozone financial institutions to deliver comprehensive AI-threat response strategies by October 31. Bailey also cautioned that markets remain vulnerable to a disorderly correction amid sovereign-debt weaknesses, private-credit vulnerabilities, elevated valuations and increased equity-market leverage. The next G20 meeting is scheduled for December 14-15 in Miami, Florida.