New Delhi, Sept. 1 -- Bank of England Governor Andrew Bailey has warned that the impact of artificial intelligence on cyber risk is the most immediate concern facing the global financial system, saying advanced AI could dramatically alter the speed, scale and economics of cyberattacks.

Bailey, who is also Financial Stability Board (FSB) Chair, made the comments in a letter to G20 finance ministers and central bank governors ahead of their meetings this week.

Bailey said the rapid development of advanced AI models could allow cyber vulnerabilities to be identified more quickly, potentially giving attackers greater ability to exploit weaknesses across financial institutions and critical systems.

He warned that regulators and financial in...