BoE Warns of AI Market Shocks Amid Price Bubbles

Bank of England Governor Andrew Bailey has sounded a warning about the potential risks of artificial intelligence on financial markets. Bailey said that AI has 'great potential to strengthen growth in our economies,' but also brings substantial risks, which need to be addressed.

He noted that investors are currently pricing major AI companies as if they will all succeed, and this could lead to a correction in asset prices at some point. Bailey emphasized the importance of being prepared for shocks to the market and ensuring the system's resilience.

The FTSE 100 was down 124 points at 10,481 shortly after opening, while Brent crude oil futures fell by 1.12% to $96.93 a barrel.