Knowledge at Wharton
Knowledge at Wharton
The Wharton School
AI and the Future of Financial Stability
28 minutes Posted Sep 21, 2026 at 9:30 am.
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AI can help financial institutions detect fraud, manage risk, and improve productivity. But when AI systems begin acting autonomously, they may also create risks at a speed and scale people cannot easily oversee.


Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, explores what agentic AI means for financial markets and financial regulation. She explains why regulators must move beyond a simple human-versus-machine framing, build meaningful accountability and guardrails around AI systems, and prepare for the potential of market feedback loops, manipulation, and collusion between autonomous agents.


Breeden also discusses the unprecedented pace of investment in AI infrastructure, the uncertainty around its eventual payoff, and how financial regulators can support innovation while protecting stability and public trust.


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