- Bank of England Governor Andrew Bailey has warned G20 finance ministers that a collapse in the artificial intelligence bubble could trigger a major global financial downturn.
- Writing in his capacity as chairman of the Financial Stability Board, Mr Bailey highlighted risks from high valuations, market concentration, and energy shocks linked to the US-Iran war.
- The warning coincides with Chancellor John Healey announcing a £100 million fund to support British AI start-ups and grow domestic AI capacity.
- The government scheme encourages firms to compete for funding to tackle key challenges, including NHS waiting lists, cybersecurity, and defence.
- Mr Healey said the initiative aims to ensure Britain leads in AI innovation, driving job creation, better public services, and nationwide economic growth.
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