Bailey's AI Warning: UK Financial Stability Fears Grip Markets

Bank of England Governor Andrew Bailey dropped a bombshell ahead of the G20 finance ministers' meeting, warning that global markets are woefully unprepared for the risks posed by artificial intelligence. As chair of the Financial Stability Board, Bailey highlighted "stretched" AI valuations, high sovereign debt, and private credit vulnerabilities as a toxic mix that could trigger a dramatic market correction. He specifically cautioned that frontier AI models could...