AI Bubble Could Spark Global Crisis, BoE Chief Warns G20
Bailey said advanced AI could speed cyberattacks and expose thousands of software flaws, raising the risk of a disorderly market correction.
- Andrew Bailey warned G20 finance ministers in North Carolina, USA, that a "future market correction" could spread globally if the artificial intelligence bubble bursts, threatening international stability.
- Writing as chairman of the Financial Stability Board, Bailey warned of "volatility" caused by energy shocks from the US-Iran war, noting markets remain vulnerable to disorderly correction due to sovereign debt fragilities.
- Bailey noted that leverage interacting with high valuations and market concentration, particularly increasing cross-investment between artificial intelligence companies and hyper scalers, could amplify a future market correction by triggering multiple vulnerabilities.
- Chancellor John Healey announced a £100 million fund aimed at backing British artificial intelligence start-ups, part of the Government's efforts to grow the country's "Sovereign AI" capacity and reduce foreign dependence.
- Healey stated the competition will help ensure benefits are felt in every UK postcode, aiming to harness technology to drive jobs, improve NHS public services, and deliver growth that is UK-wide.
93 Articles
93 Articles
'It looks like AI trash': why platforms are now 'during' content made with AI The advance of artificial intelligence can increase the risk of a crisis in the global financial system, especially by facilitating cyber attacks, warned Andrew Bailey, President of the Bank of England and President of the Financial Stability Council (FSB). In a letter sent to finance ministers and presidents of central banks of the G20, Bailey stated that more advance…
Andrew Bailey warns that border models change the "speed, scale and dimension" of cyber risk and calls for urgent measures to ensure the "safe and responsible" use of artificial intelligence.
The Governor of the Bank of England, Andrew Bailey, left an alert on the new advanced artificial intelligence (AI) models. The state-of-the-art AI may have the ability to materially change the speed, scale and economy of cyber risk, which could undermine market confidence throughout the system, especially due to the high concentration of external service providers, stated in a letter published this Monday, August 31, addressed to the finance min…
(London=Yonhap News) Correspondent Kim Ji-yeon = Andrew Bailey, Governor of the Bank of England (BOE), the UK's central bank, [addressed] the artificial intelligence (AI) boom and the increase in leveraged investment...
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