The Bank of England said UK economic activity has been more resilient than expected, in part because of AI investment, with business services singled out as a key channel. It also pointed to AI, digital technology and robotics as potential drivers of sustainable economic growth via higher productivity, and to growing signs of the beginnings of a positive supply shock linked to AI-related investment.
Financial Stability And Market Risks
The central bank also flagged the risk that an AI asset price bubble could create clear financial stability strains. It said returns from AI may ultimately be strong, but markets could overvalue those prospects or the payoff could take longer than expected to materialise.
Security Concerns And Model Testing
Separately, it warned that frontier AI has increased cyberattack risks, and said more extensive model testing is needed both before and after release.
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