Business
AI boom could trigger market shocks, Bank of England boss warns
Bank of England Governor Andrew Bailey has issued a warning regarding the massive capital influx into the artificial intelligence sector. He cautioned that while AI holds significant potential for economic growth, the current high valuations of AI-focused companies could lead to market corrections if expectations are not met. Bailey emphasized that the central bank is monitoring the situation closely to ensure financial system resilience. Beyond market volatility, he highlighted critical risks including the use of AI in sophisticated cyber attacks and the proliferation of deepfakes, which pose challenges to public trust and institutional security.