AI Risks Global Economic Downturn, Warns Bank of England's Andrew Bailey

Andrew Bailey, Governor of the Bank of England, has warned G20 finance ministers that artificial intelligence (AI) could cause a global economic downturn. In an open letter to US finance ministers on Monday, he stated that any collapse of growth in the AI sector could lead to a 'future market correction' that spreads worldwide.

The Governor highlighted the potential for significant cyber security risks to financial systems due to AI's increasing power and influence. He emphasized the importance of developing 'appropriate steps to support safe and responsible model release and deployment on a global basis.'

Bailey also expressed concern about the volatility prompted by energy supply shocks caused by the US-Iran war, which could exacerbate any future market correction.