Bank of England’s Bailey warns the AI boom could bring market shocks
AI could set off shocks in financial markets, and the UK has to be ready for them, Bank of England governor Andrew Bailey told the BBC on Thursday. He said the Bank is watching the money flowing into AI “very carefully”.
Mitchell Labiak and Faisal Islam of the BBC asked him whether an AI bubble could burst.
“You could see some correction of asset prices at some point,” Bailey said.
He said AI has “great potential to strengthen growth” but also brings “substantial risks”. Everybody is “currently priced to be a winner”, he said, but looking back at the past, “not everybody is a winner”.
“Google was not the first market leader in internet search. It was Netscape. Nobody can remember Netscape today. It doesn’t exist. So not everybody always wins,” Bailey said.
He said the Bank expects “some shocks” to markets and has to make sure the financial system...
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