The Bank of England says the UK financial system faces growing risks from the use of artificial intelligence (AI). In its assessment, the central bank highlights that AI-related challenges could affect financial stability, though it does not single out a specific firm or incident. The Bank points to the broader potential for AI to change how financial services operate, including how decisions are made and how systems respond to market conditions. It also indicates that these technologies may increase uncertainty and create new vulnerabilities within financial markets and institutions. The warning frames AI as an emerging risk factor that regulators and firms need to monitor and manage, alongside existing financial risks. The Bank’s message is consistent with the view that as AI becomes more embedded in financial services, regulators must consider how it could contribute to operational, model, or systemic risks. Overall, the Bank of England’s statement signals that AI is now part of its evolving financial stability outlook and that further scrutiny is required.