Andrew Bailey: Latest AI advances are an ‘OMG moment’ for cyber crime

Bank of England Governor Andrew Bailey described the latest advancements in frontier AI as an "OMG moment," warning that countries must "arm themselves" to combat the emerging threat of financial crime. Speaking at the annual City of London Police Authority Board dinner, Bailey emphasized the need for dedicated resources and expertise to address the rapidly evolving technology. He stated, "As the technology advances at an exponential pace, we need this dedicated resource and expertise more than ever."

Bailey further explained, "Let's make no mistake, the technology is advancing at an exponential pace... when I first heard about the advances in Frontier AI, it was one of those OMG moments. Nothing I have seen or heard or read since changes my view on that." He called for increased commitment to specialized expertise in the face of this technological surge.

These remarks came in response to recent warnings from other AI leaders. Anthropic CEO Dario Amodei urged AI companies to "slow the pace" of improvement for their most powerful models, while OpenAI CEO Sam Altman and SpaceX CEO Elon Musk echoed the call. This rare alignment between three major industry rivals highlighted the growing concern over the rapid development of frontier AI models.

Bailey reiterated his support for the City of London Police, acknowledging their specialized expertise in financial crime. He cautioned against potential downsizing of the force, which he described as "essential" for safeguarding the nation. "City Police also provide a national specialism in fraud and financial crime. This is – sadly but honestly – essential," Bailey asserted.

"And it's natural that the specialism in financial crime should be located alongside the centre of financial activity. Not because the financial criminals are in the City, but because the specialism and expertise to protect the nation as a whole can be built through experts working together."