The governor of the Bank of England called for the “right to intervene” in the AI industry amid growing fears that rogue models could take the financial system hostage.

Andrew Bailey said the risks posed by frontier AI models – a number of which have gone rogue in recent months – were “real and increasingly significant”. Meanwhile, it was becoming harder for the public to have proper oversight of powerful AI models that were “functioning within a self-reinforcing loop”.

Same Andrew Bailey as the one making a philosophical case for Bitcoin?

#693058

That is putting financial stability at risk, with the new technology having increased the “scale and sophistication of cyber threats to the financial system”, he said. The governor warned it could threaten daily card payments, bank transactions, and stock and bond trading across financial markets.

The reason I looked for this Guardian article is that my local newspaper was citing the words of Andrew Bailey. However, as I read the article in English, it seems like they are misquoting him, as, here, he does not seem to say that "AI agents will cause a bank run because agents will move money out of the tradfi system into neobanks with better rates". Weird... maybe it's another article they are quoting.

Seems like the quote is actually from Torsten Slok.

"If every household used AI agents to optimize the return on their cash balances, banks could lose a large share of the cheap deposits they rely on to make loans, which would be a problem for the entire financial system," Torsten Slok, chief economist at the investment firm Apollo Global Management, wrote in a note on Sept. 27.

I already don't want to give my LLMs access to my emails; God forbid I'd give them access to my bank accounts.

Then again, not everyone shares the same concerns I do, so maybe that's the future we're heading to? Zuck's wet dream, for sure, with his Muse project. They've ruined the name of my favorite band with that one.