The Bank of England says it will study the threats presented by artificial intelligence and machine learning next year.
The Bank of England, which monitors financial stability in the United Kingdom, announced on Wednesday that it will study the dangers presented by artificial intelligence and machine learning next year. In its semi-annual
In the Financial Stability Review, the bank stated that it was seeking input on the possible implications of AI and machine learning adoption in the financial services sector, which accounts for roughly 8% of the British economy and has extensive worldwide ties.
The bank’s Financial Policy Committee, which identifies and monitors risks, stated that it and other authorities would work to ensure that the United Kingdom’s financial system is resilient to dangers posed by the broad use of AI and machine learning.
“We obviously have to go into AI with our eyes open,” said bank governor Andrew Bailey. “It is something that I think we have to embrace; it is very important and has potentially profound implications for economic growth, productivity, and how economies are shaped going forward.”
The potential benefits and hazards of new technologies have expanded in the last year. Some analysts have expressed concern about AI’s undiscovered hazards and have called for protections to protect people from its existential threats.
With its ability to create human-like text and visuals, OpenAI’s ChatGPT and other chatbots have skyrocketed in popularity, sparking a global race to figure out how to control AI. On Wednesday, European Union leaders attempted to reach an agreement on world-first AI laws.
“The moral of the story is that if you’re a firm using AI, you have to understand the tool you are using; that is the critical thing,” Bailey went on to say.
Bailey, who admits he is “palpably not” an expert on AI, believes the new technologies offer “tremendous potential” and are more than just “a bag of risks.”
Also read: Organizations should be driven based on people and processes instead of emphasizing technology
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