Andrew Bailey, the Bank of England governor, has warned that authorities must maintain the ability to intervene in artificial intelligence development to protect financial stability. His concerns centre on rogue AI models that could compromise the financial system and the growing sophistication of cyber threats powered by advanced AI technology, which could disrupt critical services like card payments, bank transactions and stock trading.

Bailey advocated for rigorous testing and understanding of AI systems rather than premature regulation, suggesting this should be the "sensible starting point" for managing risks. The Bank's financial policy committee simultaneously warned that AI-related debt has soared to $450 billion between January and September 2026, already surpassing the £339 billion worth of UK government gilts planned for the entire year, thereby exposing investors including hedge funds and asset managers to the fortunes of unprofitable AI companies.