IMF chief: Advanced AI like Mythos could destroy financial system

The head of the International Monetary Fund issued a stark warning on Wednesday: advanced artificial intelligence systems such as Anthropic’s Mythos could be weaponized to “destroy the financial system” if they end up in the wrong hands. Kristalina Georgieva, the IMF’s Managing Director, delivered the remarks in Brussels while unveiling the Fund’s annual economic assessment of the eurozone.

“What we recognize is that Mythos is just the beginning, there will be more like it,” Georgieva told reporters. She highlighted that the same capabilities enabling frontier models to detect cybersecurity vulnerabilities “with speed and scale that was unthinkable until now” can also be turned into a threat. “In the wrong hands, that same capacity can be used to destroy the financial system.”

Georgieva urged nations to establish “all the elements of cybersecurity in place” and called for deeper collaboration between wealthy and developing countries, as well as between public and private sectors. She pointed out that no global cybersecurity organization exists and that “in the current geopolitical environment it’s hard to imagine that we can have one.”

Advanced economies, she argued, “have to figure out a way to help the developing world” protect itself, given the deep interconnectedness of the global financial system. “If there is a big weakness, it will be utilized.” She also advised governments to account for AI-related cybersecurity in their budgets. “Recognize that patching costs money. Make sure that you have the fiscal space.”

The warning arrives as central banks and regulators race to respond to the risks posed by Mythos. The Federal Reserve and U. S. Treasury have convened bank CEOs, while the European Central Bank is conducting cybersecurity exercises. Euro-area finance ministers have demanded access to Mythos after discovering that no EU institution can see what the model uncovers. Japan, Australia, and the United Kingdom have all requested briefings.

Georgieva also raised concerns about the AI investment boom potentially turning into a bust. “We also could see the AI enthusiasm, the AI boom more at risk of turning into an AI bust,” she said. “We don’t see it as high probability, but it’s also not zero. So it falls in the category of low probability, very high impact risks.”

That caution came on the same day SpaceX debuted at a $2 trillion valuation, Amazon borrowed $17.5 billion for AI infrastructure, and Alphabet closed an $85 billion equity offering. Total AI-related capital commitments from Big Tech in 2026 now exceed $700 billion. Georgieva is effectively signaling that the financial system is unprepared for a scenario where that spending fails to generate returns.

The eurozone’s economic outlook has also deteriorated. The IMF projects growth of just 0.9% in 2026, a drop of 0.5 percentage points from pre-war estimates. Inflation is expected to rise to 2.8%. Georgieva noted that 80% of government measures to help households manage energy costs do not meet the IMF’s standard of being “temporary and targeted.” Against this backdrop, asking countries to find fiscal space for AI cybersecurity is a difficult request, but one the IMF is making regardless.