Bank Regulator Warns: New AI Models Could Disrupt UK Financial Services
Potential Impact of Advanced AI on UK Banking Sector
LONDON, May 11 (Reuters) - The head of the Bank of England’s regulatory arm on Wednesday said it was “reasonable to expect quite significant disruption” to financial services from the latest AI models such as Anthropic’s Mythos and ChatGPT 5.5 Instant.
Regulatory Concerns Over AI-Driven Disruption
Sam Woods, chief executive of the Prudential Regulation Authority, cited such models' growing ability to identify vulnerabilities, and the requirement for banks to patch these - “the main driver of outages” in the financial system - at speed.
Cybersecurity and Operational Resilience
Woods said firms would need to step up basic cyber hygiene and respond faster, with AI-driven defences becoming more important. He was speaking at UK Finance's Growth Delivery Summit.
Industry Response and Preparedness
Anthropic rolled out its latest AI model, Mythos, to a limited number of businesses in April. It is viewed by cybersecurity experts as posing challenges to the banking industry and its legacy technology systems, although a BoE co-led cyber group determined last month that the sector was prepared for those challenges.
Reporting and Editorial Notes
(Reporting by Phoebe Seers; Editing by Kevin Liffey and Alex Richardson)
