AI boom could trigger market shocks, Bank of England boss warns
Andrew Bailey says the central bank is watching the waves of cash being invested in artificial intelligence "very carefully".
The governor of the Bank of England has cautioned that artificial intelligence (AI) could trigger financial market shocks, as the central bank closely monitors the significant investments flowing into the sector. Andrew Bailey noted that while AI holds great potential to boost economic growth, it also presents substantial risks, including the possibility of a market bubble bursting and the emergence of AI-related cyber threats and deepfakes.
The asset prices of AI companies, such as Nvidia, Alphabet, Meta, Microsoft, and Amazon, have skyrocketed, reflecting investors' high expectations for the technology's potential returns. Bailey emphasized that the bank is prepared for market corrections and stressed the need to ensure system resilience as AI continues to reshape the economic landscape.
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