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Andrew Bailey says rising AI company valuations could bring market shocks, while also pointing to the technology’s potential to boost growth.
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Bank of England governor Andrew Bailey has warned that the surge in artificial intelligence investment could unsettle financial markets, saying the Bank needs to keep the financial system resilient. He made the comments in a BBC News interview published on 1 October 2026. [1]
Asked whether an AI bubble could burst, Bailey said asset prices could undergo a correction “at some point”. He said heavy investment and rising prices for companies developing AI reflected high expectations, but cautioned that not every company would succeed. [1]
Bailey also said AI had substantial potential to strengthen economic growth. He suggested it could speed up work supporting the Bank’s Monetary Policy Committee, but said it would be a tool for policymakers, not a system that sets interest rates. [1]
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