Artificial Intelligence Could Cause Global Economic Recession and Cyber Risks

Bank of England Governor and Financial Stability Board (FSB) chair Andrew Bailey stated in an open letter to G20 finance ministers that artificial intelligence technologies could trigger a global economic recession.

Global Economic Recession Warning

Bank of England Governor Andrew Bailey stated that a potential growth crash in the artificial intelligence sector could lead to a future market correction spreading worldwide.

Cybersecurity and Financial System Risks

Andrew Bailey emphasized that companies around the world must be prepared for security breaches and cyberattacks that could affect multiple firms simultaneously.

Major tech companies such as Google, Microsoft, Anthropic, and OpenAI had previously called on countries to strengthen their cyber defenses before artificial intelligence becomes even more powerful.

Market Valuations and Leverage Effect

Bailey pointed out that high stock market prices, increasing borrowing, and the concentration of funds in a small number of technology companies could exacerbate future market corrections.

It was stated that cross-investments between artificial intelligence companies and large-scale tech firms could increase market volatility.

Global Security and Responsible Model Deployment

A call was made for officials responsible for financial security to take steps to support the deployment of safe and responsible artificial intelligence models on a global scale.