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Bank of England warns AI debt surge risks 'sharp market correction'

The Bank of England has cautioned that a surge in AI-related debt could lead to a significant market correction.

  • The Bank of England has warned of a potential 'sharp market correction' due to AI debt.
  • The Governor stated that regulators 'cannot stand aside' regarding AI industry risks to financial stability.

The Bank of England has issued a warning that a surge in debt linked to artificial intelligence (AI) could precipitate a 'sharp market correction'. The Governor of the Bank of England indicated that regulators must not 'stand aside' and expect the AI industry to manage the risks it poses to the stability of the financial system.

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