Bailey Warns of Market Shocks from AI Boom

Bank of England Governor Andrew Bailey has expressed concerns about the rapid growth in artificial intelligence investment and its potential to cause market shocks. Speaking to the BBC, Bailey warned that not everyone who invests in AI will be a winner.

The central bank is closely monitoring the huge amounts of money being poured into AI-related assets, with global debt issuance reaching $450 billion by early September, more than double the 2025 total. Bailey noted that history shows 'not everybody always wins' and cautioned that some correction in asset prices may be necessary.

The Bank of England's Financial Policy Committee has also highlighted the risks associated with AI-related assets, particularly if expectations for earnings or adoption weaken.