Bank of England Governor Discusses AI Risk Management and Regulation

Why it matters locally: While a foreign central bank's stance on AI regulation is not directly binding, Illinois's significant tech sector and academic institutions involved in AI development will be monitoring global discussions on AI risk management, as these conversations often inform future federal and international regulatory frameworks that could impact local innovation and industry practices.

LONDON – Andrew Bailey, Governor of the Bank of England, indicated that immediate regulation of artificial intelligence (AI) is not the initial step authorities should take. He emphasized the necessity of extensive testing and the implementation of safeguards to control the potential risks presented by AI systems. Bailey conveyed these remarks, explaining that officials should prioritize understanding and managing AI's capabilities through stringent controls. He suggested this approach precedes the establishment of comprehensive regulatory structures. He stated that regulation of AI is "not the right place to start." The Governor also highlighted the need for these rigorous measures to ensure the safe development and deployment of AI technologies. He defined these steps as essential for containing any inherent risks before further governmental oversight. Bailey specifically called for "rigorous" testing and safeguards to contain risk.