Published by Global Banking & Finance Review®
Posted on October 6, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleBank of England's Bailey urges a pragmatic AI approach, focusing on solutions and investment support in the UK.
LONDON (Reuters) -British authorities should take a "pragmatic and open-minded approach" to applications of artificial intelligence and seek to solve risks it poses rather than just highlight them, Bank of England Governor Andrew Bailey said on Monday.
"We must understand what it can and cannot deliver, and where it can create broader issues that will need to be tackled. But I would say to the alarmists that it is all of our responsibility to solve such issues rather than just broadcast them," he said.
Bailey made the remarks in the text of a speech released by the central bank ahead of its delivery at a dinner in Edinburgh to promote investment in Scotland.
Bailey said there was a need for a supportive domestic environment to help investment in AI and other projects that needed time to pay off, and said he supported government efforts to encourage pension funds to invest more in British businesses.
($1 = 0.7421 pounds)
(Reporting by David MillikenEditing by William Schomberg)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn. It can perform tasks such as problem-solving, understanding natural language, and recognizing patterns.
Investment is the act of allocating resources, usually money, in order to generate income or profit. It can involve purchasing assets such as stocks, bonds, or real estate.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It oversees the banking system and implements monetary policy to ensure economic stability.
Financial regulation refers to the laws and rules that govern the financial industry. These regulations are designed to maintain the integrity of financial markets, protect consumers, and prevent financial crises.
Risk management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings. It involves strategies to minimize potential losses and ensure financial stability.
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