The Bank of England's Court of Directors has approved additional investment to address challenges posed by frontier AI in the current financial year. This decision was made during a meeting on 16 July 2026, where Court approval was sought for the funding.
Governor Andrew Bailey noted that this work was vital. He also updated the Court on recent developments, including the impact of renewed Middle East tensions on energy prices.
During the meeting, the Governor highlighted the recent Financial Stability Review, which identified the ongoing evolution and application of AI as a key risk to financial stability. The Bank is supporting banks to ensure they can gain sufficient access to AI models to protect their cyber security. The Financial Policy Committee (FPC) also agreed on a package of proposed changes to the capital framework for banks.