Bank of England Chief Sounds Alarm on AI Market Risks
The Governor of the Bank of England, Andrew Bailey, has expressed concerns about the risks associated with Artificial Intelligence (AI) on financial markets.
Bailey warned that huge investments in AI could trigger shocks in financial markets, as not everyone investing in AI will come out a winner.
He noted that asset prices of some companies, such as Nvidia, which has become the world's most valuable listed company with a market value of 5.5 trillion dollars, may fall.
Bailey also cautioned about the risks associated with AI being used for cyber attacks and deepfakes, saying AI-generated images and videos could be used to deceive the public.
Despite these risks, Bailey acknowledged that AI has clear benefits, including speeding up work that supports interest rate decisions.