Bank of England Governor Andrew Bailey has warned that the artificial intelligence boom could trigger shocks in financial markets as investors pour huge sums into the technology.
Bailey said AI has “great potential to strengthen growth in our economies”, but cautioned: “But it also brings with it substantial risks and so we have to be on top of both of those.”
Asked whether an AI bubble could burst, he said: “You could see some correction of asset prices at some point.”
Bailey said markets currently appeared to assume that many of the major AI companies would succeed, adding: “Everybody is currently priced to be a winner.”
He added: “We are prepared for the fact that there will be, I think, some shocks come along to markets and we have to deal with that. We have to make sure the system is resilient.”
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