Bank of England governor warns G20 about AI market risks

Andrew Bailey, the governor of the Bank of England, has written to G20 finance ministers warning that a crash in the AI sector could cause serious problems for the world economy. Bailey sent the letter in his role as chairman of the Financial Stability Board. He said AI company values are very high right now, and if they fall sharply, the effects could spread across many countries. He also warned that AI creates cyber security risks for financial systems. Companies should prepare for attacks that could hit many firms at the same time, he said. Bailey added that no country can protect itself fully from problems in international financial systems. He also named energy shocks from the US-Iran conflict as another source of economic risk.