Bank of England chief warns AI valuations could trigger next financial crisis

andrew bailey, governor of the bank of england and chair of the financial stability board, warns g20 finance ministers about the risks of inflated ai valuations and rising leverage in the financial system. he points to the growing web of cross-investments between ai companies and hyperscalers, and notes that a major ai company stumbling could drag down other tech giants and eventually the broader market. bailey also expresses concern about frontier ai models, which could materially alter the speed, scale, and economics of cyber risk.