{"id":911187,"date":"2026-09-30T16:18:12","date_gmt":"2026-09-30T16:18:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/911187\/"},"modified":"2026-09-30T16:18:12","modified_gmt":"2026-09-30T16:18:12","slug":"we-need-right-to-intervene-in-ai-amid-growing-threat-says-bank-of-england-boss-ai-artificial-intelligence","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/911187\/","title":{"rendered":"We need \u2018right to intervene\u2019 in AI amid growing threat, says Bank of England boss | AI (artificial intelligence)"},"content":{"rendered":"

The governor of the Bank of England<\/a> has called for the \u201cright to intervene\u201d in the AI industry amid growing fears that rogue models could take the financial system hostage.<\/p>\n

Andrew Bailey said the risks posed by frontier AI models \u2013 a number of which have gone rogue in recent months<\/a> \u2013 were \u201creal and increasingly significant\u201d. Meanwhile, it was becoming harder for the public to have proper oversight of powerful AI models that were \u201cfunctioning within a self-reinforcing loop\u201d.<\/p>\n

That is putting financial stability at risk, with the new technology having increased the \u201cscale and sophistication of cyber threats to the financial system\u201d, he said. The governor warned it could threaten daily card payments, bank transactions, and stock and bond trading across financial markets.<\/p>\n

Andrew Bailey said the risks posed by the rapid advancement of frontier AI models were \u2018real and increasingly significant\u2019. Photograph: Sarah Lee\/The Guardian<\/p>\n

The comments came as the Bank\u2019s financial policy committee (FPC) said the growing mountain of AI debt<\/a> was increasing financial stability risks.<\/p>\n

The potential benefits of AI \u201care immense\u201d, Bailey said but he added that authorities needed to be ready to step in.<\/p>\n

In an opinion piece penned for the Bank of England\u2019s Insight series, he said: \u201cIf we are to realise those benefits safely, we must answer one critical question. Should society retain the ability to intervene, to establish the boundaries within which these systems operate and to revise those boundaries as the technology evolves? To my mind, the answer is unequivocally yes.\u201d<\/p>\n

But Bailey said authorities needed to figure out why they might be forced to step in. He said a \u201csensible starting point\u201d would be rigorous testing of new AI models to understand how they behave and identify \u201ccredible points\u201d where authorities could intervene.<\/p>\n

\u201cIn time, that understanding could be codified into a set of standards which will help to ensure consistency in approach across the financial system, and perhaps more broadly across the economy,\u201d he said.<\/p>\n

However, the governor stopped short of calling for a regulatory clampdown, saying it was \u201cnot, in my view, the right place to start. In the excitement surrounding AI development, there is a risk that we move too quickly to debates about regulatory architecture before establishing where the failure exists in the first place.\u201d<\/p>\n

A growing number of lawmakers, AI researchers and even some AI companies have called for more government oversight of artificial intelligence in recent weeks. However, hopes for international cooperation faded after Donald Trump broadly rejected calls for more regulation of AI technology \u2013 most of which is being developed in the US \u2013 warning it could hurt efforts to compete with China and threaten economic growth.<\/p>\n

But Bailey said a set of standards could help safeguard the financial system from harmful AI, which may end up operating outside well-established \u201cshared norms, obligations and responsibilities\u201d.<\/p>\n

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\u201cCentral banks have a responsibility to safeguard the stability of the system as a whole,\u201d Bailey said. \u201cWe cannot stand aside and assume that technological progress will resolve these questions on its own. The public interest requires that we engage with them now, before the risks become more difficult to contain.\u201d<\/p>\n

Warning of the ballooning AI debt pile, the FPC said large players in the sector had taken on $450bn (\u00a3339bn) worth of debt between January and September this year, already overtaking the $333bn worth of gilts due to be issued by the UK government for the whole of 2026.<\/p>\n

That has tied investors \u2013 including hedge funds, asset managers and private credit firms \u2013 to the fortunes of AI companies at a time when those tech businesses have yet to turn a profit.<\/p>\n

\u201cThe rapid increase in artificial intelligence-related debt issuance broadens the exposure of capital markets to development in AI,\u201d minutes of the recent FPC meeting on 25 September said.<\/p>\n

\u201cThe committee underscores the importance of timely and careful management of these intensifying, interconnected risks.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The governor of the Bank of England has called for the \u201cright to intervene\u201d in the AI industry…\n","protected":false},"author":2,"featured_media":911188,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-911187","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/911187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=911187"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/911187\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/911188"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=911187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=911187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=911187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}