Bank of England Governor: AI may trigger shocks in the financial market

According to a report by Sina Finance, Bank of England Governor Bailey warned that artificial intelligence could trigger shocks in financial markets, and the UK needs to be prepared for this. The Bank of England is "watching very closely" the massive investments being made in the AI sector.

When asked if he thinks an AI bubble might burst, Bailey stated, "At some point in the future, asset prices may experience a certain degree of correction." He believes this technology "has enormous potential to enhance our economic growth, but it also comes with significant risks, so we must fully understand both aspects at the same time." Bailey remarked, "Currently, every company is seen as a winner in pricing, but not everyone is a winner." However, Bailey noted that a significant potential benefit of AI is its ability to "accelerate the work that supports the Monetary Policy Committee," adding, "It won't make decisions for us, but it is a tool in the hands of policymakers, which is a good thing."