The Group of Seven (G7) advanced economies will conduct exercises simulating artificial intelligence-driven cyber attacks to test the financial sector’s defences and improve coordination between authorities.
Japanese Finance Minister Satsuki Katayama announced the agreement on October 15, following a meeting of G7 finance ministers and central bank governors held on the sidelines of the International Monetary Fund’s annual gathering in Bangkok, Thailand.
The initiative comes amid growing concerns that AI-enabled cyber attacks could disrupt financial institutions and undermine confidence in the global financial system.
G7 AI Cyber Attacks: Testing Financial Defences
Katayama said G7 finance deputies had discussed tabletop exercises involving frontier AI, with the proposal subsequently approved at ministerial level.
The simulations will be developed by G7 finance authorities to test how governments and financial regulators respond to cyber attacks powered by advanced AI systems.
A Japanese Finance Ministry official who attended the meeting said the exercises would assess the effectiveness of existing response protocols. Their findings would then inform revisions to operational manuals to improve preparedness for future incidents.
Central Banks and Financial Institutions May Participate
The exercises will involve G7 finance ministries and central banks. Depending on the nature of the scenarios, private financial institutions could also participate.
The initiative is intended to help authorities identify weaknesses in their existing response mechanisms and improve coordination when confronting AI-driven cyber threats.
The agreement reflects growing recognition among policymakers that advanced AI could increase the complexity and potential impact of cyber attacks against critical financial infrastructure.
IMF Warns of Risks to Market Confidence
The decision follows a warning from the International Monetary Fund earlier this week that an AI-enabled cyber attack targeting a critical service at a financial institution could undermine market confidence.
Such an incident could pose risks beyond the institution directly affected, particularly if it disrupts essential financial services or triggers wider concerns about the resilience of the banking system.
The IMF’s warning has added urgency to efforts to prepare for cyber threats involving increasingly capable AI systems.
Banking Regulators Strengthen AI Risk Oversight
Banking regulators worldwide are stepping up scrutiny of AI-related risks amid concerns that cyber attacks or rogue AI agents could threaten financial stability.
The Bank of England is working with banks on advanced cyber-recovery options. Its Deputy Governor said on October 15 that financial institutions could no longer assume their defences were immune to AI-enabled attacks.
The G7 exercises will provide an opportunity to test existing safeguards and identify where response procedures need improvement as financial authorities adapt to an evolving cyber threat landscape.