AI boom could trigger market shocks

AI boom could trigger market shocks, Bank of England boss warns

The central bank is watching the huge amounts of money being invested in AI 'very carefully' and cautioned that 'not everybody always wins'

Andrew Bailey said the technology has great potential to strengthen growth in our economies, but also brings substantial risks and so we have to be on top of both of those

AI chipmaker Nvidia is currently the world's most valuable listed company, with a market valuation of $5. 5tn (£4. 14tn), thanks largely to investors who believe in the big profits AI could create

Regulating AI 'not the right place to start' says Bailey, citing concerns over deepfakes and cyber attacks

Andrew Bailey says the central bank is watching the waves of cash being invested in artificial intelligence 'very carefully' and cautioned that 'not everybody always wins'. The money that has been spent on and loaned to AI firms over the last few years in the hope of large returns is causing markets to value some of them as multi-trillion dollar businesses.

Asked if he believed an AI bubble could burst, Bailey said: 'You could see some correction of asset prices at some point. 'He was speaking exclusively to the BBC about what the risks and benefits of AI could be for the UK economy.

Bailey said he believed the technology has 'great potential to strengthen growth in our economies', adding that this was something the country needed.