The Bank of England will reassess its regulations regarding artificial intelligence in the financial sector. This was announced by Deputy Governor Sarah Breeden at the European Central Bank forum in Sintra.
According to her, technology-neutral regulations were not designed for systems capable of operating without human intervention. The main risks associated with the active deployment of AI agents will be cyberattacks, payment failures, and synchronized market errors.
“The evident acceleration in AI capabilities, even compared to six months ago, presents a dual challenge: not only ensuring responsible deployment and risk management but also recognizing that AI must transform the operational methods of central banks. We need to seriously consider both aspects,” Breeden stated.
Among the potential measures, she mentioned stricter requirements for the recovery of key systems, fully isolated backup capacities, and the ability to quickly rebuild compromised infrastructure. For the markets, the regulator is also exploring safeguards similar to emergency trading halts in case erroneous AI models trigger widespread disruptions. Breeden also highlighted the risk of herd behavior, where agents react to the same triggers and amplify volatility.
On May 15, the Bank of England, Financial Conduct Authority, and HM Treasury issued a joint statement on the cyber risks posed by advanced AI models in the financial sector. On June 22, a similar assessment was provided by the Five Eyes alliance, warning that the window between detecting a vulnerability and its exploitation is narrowing to months.
On June 10, the Financial Stability Board published a consultation document outlining 12 practices for the responsible adoption of AI in financial organizations. While it does not establish a mandatory international standard, it offers a framework for corporate governance and risk control at all stages of development and implementation.
According to the Cambridge Centre for Alternative Finance, 81% of industry participants surveyed are already implementing AI at some level, and 52% are in the pilot phase or have more mature deployments of agent-based AI. Currently, the primary applications are in internal processes: automation, data visualization, and software development. In the front office, implementation remains limited.
In a response to a parliamentary committee on April 1, the Bank of England indicated that generative and agent-based AI are not yet used in the financial system in a way that creates systemic risk. However, the regulator emphasized that the technology-neutral approach will be revised.
In May 2026, the International Monetary Fund called for AI-related cyber risks to be viewed as a financial stability issue, not just an IT security concern.
It is worth noting that discussions are also ongoing in other institutions, including the Bundesbank and the Bank for International Settlements.