Andrew Bailey: AI network risks threaten financial stability, calls for strengthened regulation

Andrew Bailey, President of the Bank of England and Chairman of the FSB, wrote a letter to G20 finance ministers and central bank governors, stating that the network risk of cutting-edge AI models increases the risk of market collapse, and calling on countries to control the release of models. Andrew Bailey stated that financial institutions and technology groups need to prepare for scenarios where multiple companies or shared technology dependencies are severely disrupted simultaneously, and warned that AI network risks amplify financial vulnerabilities such as energy driven inflation, high interest rates, high investor leverage, and high stock valuations. Andrew Bailey urges countries to take appropriate measures to regulate the release of cutting-edge AI models, as US President Trump's recent executive order did not grant the government the power to block model releases.