The Bank of England has sounded the alarm over a sharp increase in artificial intelligence (AI) risks amid soaring stock markets and cyber attack fears.
A twice-yearly assessment by the Bank highlighted the increasing frenzy for AI stocks including the recent market debut for SpaceX.
And it also pointed to the risks that could be posed by the rapid advances in the technology itself as cyber attacks threaten banks’ IT systems.
The Bank issued the alert as part of its Financial Stability Report, its regular assessment of risks to the UK financial system.
It comes as borrowers are facing higher interest rates as a result of the Iran war, which has driven up energy prices and inflation.
