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Financial Services / AI / Bank of England

Bank of England warns AI could exacerbate concentration risk, explores possible “system-wide exercises”

"Third-party exposure will continue to increase as the complexity of models increases and outsourcing costs decrease"

Edward Targett
By  Edward Targett
3 min read
Bank of England warns AI could exacerbate concentration risk, explores possible “system-wide exercises”
Image credit: https://unsplash.com/@crawnical

UK financial services regulators have got progressively more comfortable with public cloud – to the extent that multicloud failovers, industry CIOs tell us, are no longer seen as a “must”. After all, region-wide borkage like Google Cloud’s unfortunate fire and flood combo is as rare as hen’s teeth.

By and large the hyperscalers have proven to be resilient – and automated cross-region failover and failback for active and warm standby disaster recovery patterns is just a few clicks of a button away for most firms. 

But the boom in AI use has put cloud-related “concentration risk” back in the spotlight, a recent paper from the Bank of England suggests.

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  • Edward Targett

    Edward Targett

    Ed is a co-founder of The Stack. He previously edited Computer Business Review. He has also covered energy markets. He started his journalism career on local papers. He left school at 15 and has made a living asking "but why?" ever since.

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