G7 countries to test banks' resilience to AI-powered cyberattacks

G7 countries agreed to hold special exercises simulating large-scale cyberattacks on the banking system using artificial intelligence. The decision was made amid growing concerns that modern AI models allow attackers to find vulnerabilities in financial infrastructure faster and conduct more sophisticated attacks.

On October 16, the Financial Times reported on the outcome of the meeting of G7 finance ministers and central bank governors in Bangkok, where the annual meetings of the International Monetary Fund and World Bank are being held.

According to Japanese Finance Minister Satsuki Katayama, G7 financial officials had previously discussed holding special exercises focused on threats from advanced artificial intelligence models. Now this initiative has received ministerial approval.

The exercises will be conducted in an emergency simulation format. Representatives of government financial agencies and central banks will be presented with cyberattack scenarios in which attackers use AI capabilities to penetrate banking systems and disrupt critical financial services.

Participants will have to determine how effectively current mechanisms allow detecting such threats, coordinating actions between countries, and restoring the operations of financial institutions after potential disruptions.

As explained by a representative of the Japanese Ministry of Finance, the results of the exercises will be used to assess existing response protocols and update instructions for large-scale cyber incidents.

Depending on the selected scenarios, not only government bodies and central banks but also private financial institutions may be involved in the tests.

This refers to simulation exercises, not actual attacks on operating banking systems. The specific timing of the start of the tests has not yet been announced.

The G7 decision followed warnings from the International Monetary Fund about growing technological risks to the global financial system.

In a report published on October 13, the IMF's Global Financial Stability Report identified three main sources of potential instability: a possible correction in the value of assets related to artificial intelligence, rising government bond yields, and cyber threats capable of disrupting financial organizations.

The fund warns that a cyberattack on a critical banking service could not only stop individual operations but also undermine confidence in the financial system.

Of particular concern is the ability of new AI models to detect and exploit software vulnerabilities much faster than previously possible.

According to IMF experts, artificial intelligence could increase the speed, frequency, and scale of cyberattacks. Additional risk arises because many financial institutions use common digital infrastructure and services from the same technology providers.

Under such conditions, a successful attack on one critical service could potentially affect several banks or financial market participants at once.

The problem is recognized by national regulators as well. In particular, the Bank of England is already working with credit institutions to improve recovery procedures after major cyber incidents.

Representatives of the British regulator note that banks can no longer assume that existing defense systems are fully capable of withstanding attacks using modern AI models.

G7 countries have previously conducted joint resilience tests of financial infrastructure. In May 2026, the group organized international exercises on responding to a major cross-border cyberattack. According to the US Treasury Department, their goal was to test the interaction of regulators, recovery mechanisms, and information sharing between countries.

The new initiative differs in its focus on threats arising from the use of advanced artificial intelligence. The upcoming tests should help financial regulators assess readiness for such scenarios and agree on more effective international response mechanisms.

Sources: Financial Times, International Monetary Fund, US Department of the Treasury.