The United Kingdom finds itself in a difficult position regarding artificial intelligence: eager to attract massive global investment but wary of the potential dangers.
In the coming weeks, the Bank of England plans to ease capital rules to encourage more lending.
>>> US House Committee Advances Bill to Make Daylight Saving Time Permanent
However, the central bank has also expressed concerns that too many loans are flowing to hedge funds buying AI stocks.
This dual approach reflects the UK's global standing: hoping to catch up with the US and China in the AI race, struggling to mobilize resources, and too cautious to go all-in.
UK banking regulators have faced pressure to stimulate growth.
The relaxed requirements are expected to trigger a new wave of lending as investors seek more money for AI-related stocks.
The rules being loosened were implemented after the 2008 financial crisis, alarming critics who worry about an AI bubble.
Even the central bank has voiced its concerns publicly.
“The risk of a sharp correction in equity markets remains high,” said Andrew Bailey, Bank of England governor, on Tuesday.
He warned of a “triple whammy”: oversized investment in AI stocks, slower AI adoption than predicted, and the breakneck pace of AI development that could leave some large companies behind.
Despite his warnings, Bailey did not recommend new policies to guard against high valuations, according to Politico.
>>> Spanish Bull Run Injures 57 People in Pamplona
Meanwhile, OpenAI faces mounting difficulties that threaten its stock market debut.
