Bank of England Governor Andrew Bailey has issued a stark warning that a speculative 'AI bubble' could be forming. This concern is rooted in the US, where the worst tech layoffs in two decades are sending shockwaves through global markets.
The UK's financial authorities are now closely monitoring the turmoil in the US, fearing that the fallout from AI-sector disruptions could have significant domestic consequences. Deputy Governor Dave Ramsden warned on Thursday that if the bubble bursts, it could 'weaken global demand' and lead to 'spillovers back to the UK,' tightening financial conditions for British businesses and investors.
