The governor of the Bank of England, Andrew Bailey, has expressed concern over the potential risks posed by artificial intelligence (AI) agents in the financial sector, particularly regarding accountability when these systems mishandle transactions. Speaking at a Group of 30 (G30) conference in Bangkok on Saturday, Bailey highlighted the challenges regulators face in defining responsibility and liability for actions taken by AI-driven economic agents.

Bailey noted that while AI can perform roles akin to economic agents, current legal frameworks do not recognize such agents as holding legal responsibility. This gap raises questions about how risk management and liability will be addressed if AI systems cause financial errors or losses. He warned that the public and financial institutions might be misled about who is accountable in these scenarios, emphasizing the need for clearer regulatory oversight.

The G30 conference coincided with the International Monetary Fund’s (IMF) annual meeting, where other financial leaders, including Kristalina Georgieva, IMF managing director, discussed the broader implications of AI on financial stability. Georgieva described the potential effects of AI on the sector as “very serious,” underscoring the urgency of addressing emerging risks.

Bailey also pointed to the increasing adoption of AI agents to manage financial tasks such as payments and money transfers between accounts, a trend that has raised concerns among analysts. Some experts warn that AI could potentially facilitate the rapid movement of funds away from traditional banks, threatening the stability of the mainstream banking system.

The comments came shortly after major U.S. banks—including Citigroup and Bank of America—announced restrictions on AI accessing client accounts, reflecting growing caution in the industry. Bailey stressed that while regulatory discussions around AI are ongoing, rigorous "model testing" of AI systems will be crucial in mitigating risks. He described cyber threats to the financial sector as “absolutely urgent,” highlighting the intersection of AI vulnerabilities with broader cybersecurity challenges.

Separately, Bailey joined a group of finance officials who staged a protest by leaving the IMF meeting over Russia’s involvement, signaling political tensions amid the discussions on technological and financial risks. The developments underline the complex environment in which financial regulators and institutions must adapt to rapid technological advances while maintaining systemic stability.