Portrait of Andrew Bailey
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Andrew Bailey on Artificial Intelligence

Pragmatic AI advocate (strong)

TL;DR

Andrew Bailey views Artificial Intelligence as the next General Purpose Technology that requires careful development to drive productivity and needs appropriate regulatory oversight.

Key Points

  • He stated in October 2025 that Artificial Intelligence looks like it may be the next General Purpose Technology necessitating appropriate development.

  • The Governor raised concerns that AI may displace workers from jobs, potentially damaging the pipeline of young talent for senior professional roles.

  • He advocated for greater investment in AI and data analysis to help banking regulators find a "smoking gun" for issues like fraud, though he noted analysis is currently inefficient.

Summary

Governor Andrew Bailey regards Artificial Intelligence as potentially the next General Purpose Technology, drawing historical parallels to innovations like electricity, and stresses the necessity for its appropriate and well-managed development to foster economic growth and address flagging productivity rates. He acknowledges that such technological waves do not bring immediate benefits, noting the time lag seen with electricity, but emphasizes that persistence and investment are crucial at the current experimentation stage. He also connects AI to the Schumpeterian growth model, suggesting it is key to lifting potential growth rates which have slowed across many economies, including the UK.

However, the Governor expresses nuanced concerns regarding AI's impact on the labour market and financial stability. He warns that AI is likely to displace workers from jobs, similar to historical technological shifts, which could negatively affect the pipeline of young talent progressing to senior roles, necessitating a focus on training and skills development. Furthermore, while optimistic about productivity gains, he cautions that the technology may also present risks, such as causing asset bubbles in global stocks exposed to AI, requiring regulators to be vigilant.

Key Quotes

“none of us, I think, can put our hand on our heart to say that we're sort of optimally using it all.”

“We will not allow AI to become just another tool for manipulation.”

Frequently Asked Questions

Andrew Bailey views Artificial Intelligence as a potentially transformative General Purpose Technology that could resolve long-term productivity stagnation. He emphasizes that it must be developed appropriately and well, while also acknowledging potential short-term negative impacts on employment.

The data suggests his position has been consistently focused on both the economic potential and regulatory/labour challenges of AI as a major technological wave. His recent statements show an evolution from pure potential to addressing displacement and financial stability risks.

The Governor stated that AI can assist banking regulators in analyzing vast datasets to potentially uncover evidence of fraud or money laundering that is currently being missed. However, he noted that current analytical models are not yet optimally utilizing the data AI provides.