Bank of England Governor: Regulating AI 'not the right place to start'

Andrew Bailey, Governor of the Bank of England, has stated that regulating artificial intelligence (AI) is "not the right place to start." Instead, he called for "rigorous" testing to identify vulnerabilities and establish safeguards for risk containment.

Bailey, writing in his first-ever article for Substack, described the risks surrounding AI as "real and increasingly significant." He argued against halting AI development, noting its immense benefits, but stressed the need for intervention systems and boundaries for AI operations.

The debate on the potential risks of rapid AI development has intensified recently, with leaders from AI firms like Anthropic and OpenAI calling for a slowdown and international coordination on risk assessment and safeguards. OpenAI recently postponed the release of its latest AI model due to safety concerns.

In the UK, Bailey highlighted ongoing "important work" in AI testing, mentioning the establishment of the AI Safety Institute, which he believes should help form a set of standards. "But the pace of progress must accelerate," he said, adding, "We should proceed with a degree of humility."

Bailey acknowledged that testing will involve failures and unexpected model behavior, stating, "That is not evidence that testing has failed, rather it is evidence of why testing is necessary." He clarified, however, that testing should not be seen as an alternative to future regulation, as a more formal framework may emerge over time. "But regulation is not, in my view, the right place to start."