G7 nations to conduct cyberattack simulations targeting AI threats

Finance ministers and central bank heads from the G7 nations have agreed to conduct tabletop exercises to simulate AI-driven cyberattacks on the global financial system. The decision was reached during a meeting in Bangkok held on the sidelines of the International Monetary Fund and World Bank annual meetings.

These simulations aim to test existing response protocols and update crisis management manuals to address threats posed by frontier artificial intelligence. The exercises, which were previously discussed at the deputy minister level, will be designed by financial authorities from the advanced economies to evaluate how institutions can defend against automated attacks. Depending on the specific scenarios, the simulations may involve private financial institutions alongside ministries of finance and central banks.

The move follows warnings from the IMF regarding the potential for AI-based attacks on critical financial services to undermine systemic confidence. Additionally, the Bank of England has been working with banking entities to develop broader cyber-recovery alternatives, as officials warn that traditional defenses may no longer be sufficient against AI-powered threats.