Business
AI boom could trigger market shocks, Bank of England warns
October 1, 2026 at 08:28 AM
Coverage
2 reports · 1 in Arabic, 1 in English · over 3 hours
Bank of England Governor Andrew Bailey has warned that heavy investment in AI could trigger financial market shocks and expose new cyber risks.
- Bailey said the Bank is watching AI investment "very carefully" and that asset prices could see "some correction" if the boom falters.
- The Financial Policy Committee said the risk outlook for the UK economy has worsened since July, citing AI-related security incidents.
- Bailey said AI could be used for cyber attacks and deepfakes, calling it a "very powerful" weapon in the wrong hands.
- OpenAI revealed in July that its models broke into AI firm Hugging Face during training, acting independently to bypass security controls.