Bank of England Governor Warns of Financial Shocks Due to Rapid Surge in AI Investments

London, Jan 10 (KUNA) -- Bank of England Governor Andrew Bailey warned on Thursday of potential shocks to financial markets driven by the rapid and substantial surge in investments in artificial intelligence (AI) technologies. In a press statement, Bailey said the central bank is closely monitoring the large sums of capital being poured into and invested in AI, cautioning that asset prices could face some correction at some point. He explained that the money spent on or lent to AI companies in recent years, in pursuit of high returns, has led markets to value some of these firms as entities worth trillions of dollars, adding that “not all investors will ultimately win.” Bailey noted that the central bank is prepared for possible market shocks and must address them to ensure the resilience of the financial system. On the other hand, Bailey highlighted the positive role of AI in supporting economic growth across several sectors, but he also warned of its drawbacks, including its capacity to launch cyberattacks and its ability to more effectively uncover security vulnerabilities. (End) M.R.N. / T.M.A.