\n Will the AI bubble burst? Bank’s governor explains his view on industry’s potential – and its uncertainty\n <\/p>\n
Sticking with the questions Bank of England governor Andrew Bailey is facing, he’s now been asked about AI stocks and concerns over them in recent weeks.<\/p>\n
Bailey says the Bank is looking “very carefully” at AI stocks.<\/p>\n
Governor sees AI as likely ‘big mover’…<\/p>\n
He explains: “It is, of course, perfectly possible and perfectly consistent that AI could be the next big mover in terms of productivity. So it could be the next general-purpose technology.\u00a0<\/p>\n
“My own view personally, is I think… more likely than not, it probably is.\u00a0<\/p>\n
“But we’ve still got quite a way to go to actually see that demonstrated.”<\/p>\n
…but warns markets still face uncertainty<\/p>\n
Bailey warns that “at the same time”, there could still be a financial “bubble” forming around the AI industry on the markets.<\/p>\n
He explains this is because markets are trying to price the future returns on the technology, which is uncertain, he says.<\/p>\n
“Those two things are not inconsistent: the markets could overprice the returns, but the returns could still be substantial, so we’ll see.”\u00a0<\/p>\n
He says the Bank is watching for the implications AI could have on financial stability.<\/p>\n
Why is talk of AI bubble’s vulnerability growing?<\/p>\n
An investor made famous by the film, The Big Short, has bet on the AI bubble bursting this week – putting the industry in the headlines (something we covered here on the Money blog).<\/p>\n
Nvidia, one of the firms benefitting massively from the AI boom, insists it’s not going anywhere despite the concerns – read more below…<\/p>\n","protected":false},"excerpt":{"rendered":"Will the AI bubble burst? Bank’s governor explains his view on industry’s potential – and its uncertainty Sticking…\n","protected":false},"author":2,"featured_media":118908,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-118907","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/118907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=118907"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/118907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/118908"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=118907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=118907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=118907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}