Bank of England governor warns AI boom could trigger market shocks
Bank of England Governor Andrew Bailey told the BBC that the surge of investment into artificial intelligence could lead to financial market shocks. He said the central bank is monitoring the large sums flowing to AI firms "very carefully" and noted that current valuations reflect high expectations that may not all be met. Bailey compared the situation to the early internet era, where Netscape…
Key points
- Andrew Bailey warns AI investment surge could cause market shocks and asset price corrections
- Nvidia valued at $5.5tn; Alphabet, Meta, Microsoft, Amazon spending hundreds of billions on AI
- Bailey cites cyber attacks and deepfakes as risks; AI aids Monetary Policy Committee work
Bailey also highlighted risks from AI-enabled cyber attacks and deepfakes, citing his own experience with deepfake images on social media platform X in June. He said the Bank has struggled to trace the origin of such content and called for more help from the tech sector. On the benefit side, Bailey said AI can speed up analytical work supporting the Monetary Policy Committee's interest rate decisions, though it does not make policy decisions itself.
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AI boom could trigger market shocks, Bank of England boss warns
BBC Technology · 1 October 2026
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