The Bank of England (BoE) has flagged AI as a threat to financial stability in its latest assessment, warning that heavy investment in AI technology has created new attack surfaces for cyber threats. The BoE's half-yearly review identifies multiple risk factors including elevated share valuations, sovereign debt levels, and lending practices in private credit markets, noting that cyber vulnerabilities linked to AI deployment have intensified since the previous assessment. The central bank warns that the probability of simultaneous exploitation across multiple vulnerabilities has risen, and these converging pressures could amplify their collective impact on system stability. The current market capitalisation of AI companies rests on earnings projections carrying substantial uncertainty, with companies such as NVIDIA experiencing rapid share price appreciation. The velocity of capital deployment into AI infrastructure has reached levels without historical precedent, and a shift in investor confidence could trigger price corrections. The BoE highlights risks from complex debt arrangements that lack transparency, describing "increasing complexity and opacity in debt structures" as layered leverage creates potential instability. The Financial Policy Committee (FPC) concluded that the UK financial system has maintained resilience, but noted that new vulnerabilities require continuous assessment of defensive posture.