The UK’s financial stability watchdog, the Bank of England, said on Wednesday that it will research the risks posed by machine learning and artificial intelligence in the upcoming year.
The bank said in the Financial Stability Review that it was looking for feedback on potential effects of AI and machine learning adoption in the financial services industry, which makes up around 8% of the British economy and has strong international linkages.
The Financial Policy Committee of the bank, which assesses and tracks risks, declared that it will cooperate with other regulatory bodies to make sure that the UK financial system is safe from the threats presented by the widespread application of artificial intelligence and machine learning. “It is evident that we must approach AI cautiously,” stated Andrew Bailey, governor of the bank. “It is something that I think we have to embrace; it is very important and could have significant effects on productivity, economic growth, and the future structure of economies.”
Over the past year, new technologies have become more beneficial and dangerous. Concerned about AI’s unidentified risks, several analysts have demanded safeguards to shield people from the technology’s existential dangers.
OpenAI’s ChatGPT and other chatbots have become incredibly popular due to their capacity to produce text and images that resemble human speech, which has sparked a global competition to learn how to manipulate AI. Leaders of the European Union tried to agree on world-first AI laws on Wednesday.
Bailey continued, “The lesson from the story is that understanding the tool you are using is crucial if your company is adopting AI. Bailey thinks the new technologies offer “tremendous potential” and are more than simply “a bag of risks,” despite the fact that he acknowledges he is “palpably not” an expert on AI.
