Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, warned at the European Central Bank’s annual forum in Sintra, Portugal, that existing regulatory frameworks may no longer be fit for purpose for agentic AI in finance. She specifically targeted these autonomous systems capable of executing trades and making commercial decisions without human intervention, cautioning against amplified volatility that correlated AI agents could trigger during periods of stress. According to a survey by the Cambridge Centre for Alternative Finance, approximately 52% of financial firms were already deploying agentic AI as of mid-2026. Breeden proposed market-wide circuit breakers allowing regulators to halt trading during systemic failures, as well as enhanced recovery protocols enabling one bank to assume another institution’s essential functions during an AI-related crisis.
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