MNI BRIEF: BOE Currently Sees No Systemic AI Risk - FPC's Hall

The Bank of England currently sees no systemic risk from the use of AI in financial markets but regulators will continue to monitor the technology’s adoption, with potential risks including herding or increased linkages between key sectors such as gilt trading, external Financial Policy Committee member Jonathan Hall said Wednesday.

If the Bank spots areas of concern, it would tend to first communicate its concerns to the firms involved, and then to speak to regulators, Hall told the Treasury Select Committee.

"I think our job at the moment is to monitor whether things are growing as we think they might do, but also are we wrong? Is there a new risk we haven't thought about? Is there something that's turning out differently to how we expected? And then we will respond if needed,” Hall said. (See MNI INTERVIEW: IMF’s Adrian Sees Risks From Frothy Stocks)