The governor of the Bank of England has cautioned that artificial intelligence (AI) may cause financial market shocks, and that the UK must be prepared for them. Andrew Bailey stated that the central bank is “very carefully” monitoring the massive amounts of money being spent in AI and warned that “not everyone always wins.”
The money spent on and loaned to AI startups in recent years in the prospect of significant returns has caused markets to evaluate some of them as multi-trillion dollar businesses.
When asked if he thought an AI bubble may burst, Bailey said: “You could see some correction of asset prices at some point. He was speaking exclusively with the BBC about the potential hazards and benefits of artificial intelligence for the UK economy.
Bailey expressed his belief that technology has the capacity to boost economic growth, which the country requires.But it also carries significant hazards, so we must stay on top of both. One such danger is what happens if the large bets placed on AI fail.
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