Bank of England Governor Warns AI Could Trigger Financial Market Shocks

PANews reported on October 1, citing Sina Finance, that Bank of England Governor Bailey warned that artificial intelligence could trigger financial market shocks, and the UK needs to be prepared for this. The Bank of England is watching the huge amounts of money flowing into the AI sector "very closely." When asked whether he thinks an AI bubble could burst, Bailey said: "At some point in the future, there could be a certain degree of correction in asset prices." He believes the technology "has enormous potential to enhance our economic growth, but it also comes with significant risks, so we must fully grasp both sides of the situation."

Bailey said: "At the moment, every company is being treated as a winner in terms of pricing, but not everyone is a winner." However, Bailey said that one major potential benefit of AI is its ability to "speed up the work supporting the Monetary Policy Committee." "It will not make decisions for us, but rather serve as a tool in the hands of policymakers, which is a good thing."