Reported about 7 hours ago
Bank of England Governor Andrew Bailey cautioned that while artificial intelligence may significantly boost productivity, there is a risk of an AI bubble if markets overprice future returns. After the central bank held interest rates steady, Bailey noted the uncertainty surrounding AI's return on investment despite its potential. He highlighted concerns about stretched equity valuations in technology companies focused on AI, which could lead to market corrections and impact global demand and inflation in the UK.
Source: YAHOO