The Bank of England's chief banking regulator said that as the market is increasingly concerned about drastic adjustments in the AI sector, the Bank of England has begun to reduce AI-related risk exposure. Katharine Braddick took over the Prudential Supervisory Authority in July. In an interview for the first time since then, she said that the Bank of England carried out a comprehensive review of banks' AI risk exposure, and the results did not show that lenders would become “amplifiers” of any AI impact. Despite this, the central bank did not take it lightly. “We're all worried right now, aren't we?” she said. However, the Bank of England does not currently plan to use capital rules to encourage banks to reduce their risk exposure. Referring to the signs of contraction recently seen, she said that banks “are asking themselves this question” about whether they should cut their exposure. “I can see agencies reviewing their risk appetite and thinking over and over: 'This customer can, that customer can't. ' The impact is really being felt.”

The Bank of England's chief banking regulator said that as the market is increasingly concerned about drastic adjustments in the AI sector, the Bank of England has begun to reduce AI-related risk exposure. Katharine Braddick took over Prudential Regulation Authority in July. In an interview for the first time since then, she said that the Bank of England carried out a comprehensive review of banks' AI risk exposure, and the results did not show that lenders would become “amplifiers” of any AI impact. Despite this, the central bank did not take it lightly. “We're all worried right now, aren't we?” she said. However, the Bank of England does not currently plan to use capital rules to encourage banks to reduce their risk exposure. Referring to the signs of contraction recently seen, she said that banks “are asking themselves this question” about whether they should cut their exposure. “I can see agencies reviewing their risk appetite and thinking over and over: 'This customer can, that customer can't. ' The impact is really being felt.”