Bank of England governor says right to intervene needed in AI
Bank of England governor Andrew Bailey warned that authorities must keep a “right to intervene” in the AI industry as frontier models become increasingly risky. He said the rapid advance of AI has raised “real and increasingly significant” threats to financial stability, including the scale and sophistication of cyber attacks that could affect card payments, bank transfers and market trading.
Key points
- Andrew Bailey says authorities must retain a right to intervene in AI to protect financial stability.
- FPC warns AI‑related debt reached $450bn (£339bn) Jan‑Sept, surpassing $333bn of UK gilts for 2026.
- Bailey recommends rigorous testing of new models before considering regulatory frameworks.
Bailey stressed that while AI’s benefits are immense, regulators should first focus on rigorous testing and understanding model behaviour to identify credible points for intervention, rather than jumping straight to regulation. The Financial Policy Committee also highlighted a surge in AI‑related debt, noting that large players have taken on $450bn (£339bn) of debt from January to September, already exceeding the $333bn of gilts the UK government plans to issue in 2026. This growing exposure ties investors such as hedge funds, asset managers and private credit firms to AI firms that have yet to turn a profit.
The story so far
3 episodes →- Bank of England governor says right to intervene needed in AIthis story
We need ‘right to intervene’ in AI amid growing threat, says Bank of England boss
The Guardian AI · 30 September 2026
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This text was published by The Guardian AI and written by Kalyeena Makortoff Banking correspondent. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
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