OpenAI · Nvidia · Meta · BBC Technology
Artificial intelligence (AI) could trigger financial market shocks and the UK needs to be prepared for them
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Andrew Bailey said the central bank is watching the huge amounts of money being invested in AI "carefully" and cautioned that "not everybody always wins".
Key facts
- 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 — He was speaking exclusively to the BBC about what the risks and benefits of AI could be for the UK economy
- Andrew Bailey said the central bank is watching the huge amounts of money being invested in AI "carefully" and cautioned that "not everybody always wins
- However, Bailey said a big potential benefit from AI is its ability of "speeding up the work that supports the Monetary Policy Committee [MPC]" which sets interest rates
Summary
Artificial intelligence (AI) could trigger financial market shocks and the UK needs to be prepared for them, the governor of the Bank of England has warned. 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.