Bailey Cites AI and Robotics as Critical Growth Drivers for UK Economy
The Bank of England's governor, Andrew Bailey, has identified artificial intelligence (AI) and robotics as crucial drivers for faster growth in the UK economy.
Bailey made these comments during his attendance at the Federal Reserve's annual conference at Jackson Hole, Wyoming, where he noted that there is a 'different growth story' in the UK compared to the US.
'I think AI is critical here because we need to see faster growth in the UK, we need to see faster productivity growth, and I think AI and robotics are a critical source of that,' Bailey said.
On the topic of inflation, Bailey stated that he believes the second-round effects of price increases have been 'quite subdued' in the UK, citing the relatively low wage demands and shop price rises as evidence.
'The UK situation at the moment... is I think we're seeing quite subdued second round effects,' Bailey said. 'I think we've seen a softening of the labour market for some time now.'