We need ‘right to intervene’ in AI amid growing threat, says Bank of England boss
Summary
The Bank of England governor, Andrew Bailey, warned that artificial intelligence (AI) poses growing risks to financial stability and said authorities must keep the ability to intervene if needed. The financial policy committee also highlighted that rising AI-related debt is increasing risks in financial markets.Key Facts
- Andrew Bailey, governor of the Bank of England, says AI models can become unpredictable and pose real risks.
- AI advances increase the complexity of cyber threats to financial systems, affecting everyday banking and trading.
- The Bank of England believes society should keep the right to set and adjust rules for AI safety.
- Bailey suggests starting with strict testing of AI models rather than immediate regulation.
- The financial policy committee reports AI companies took on $450 billion of debt from January to September 2024.
- This AI-related debt exceeds the UK government’s planned bond issuance for 2026.
- Many investors like hedge funds and asset managers are financially tied to AI companies that are not yet profitable.
- The committee stresses the need to manage growing and connected risks linked to AI carefully.
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