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Bank of England Governor refutes AI job loss fears
Wed, 7th Feb 2024

The Governor of the Bank of England, Andrew Bailey, has challenged the belief that the rise of Artificial Intelligence (AI) will result in massive job losses. He argues that the evolving field is unlikely to obliterate employment, rather emphasising the possibility for humans to co-exist and collaborate with this new technology, stating, "There is great potential with it."

The statement comes in the wake of the recent evaluation of the UK's economy, showing that business entities investing in AI are set to experience a boost in efficiency and productivity. It asserts that the use of AI will yield significant improvements in production.

The United Kingdom was the host of the world's premier AI Safety Summit in November 2023. It addressed the potential hazards posed by AI and unveiled a declaration on the implementation of measures to manage these risks. Nevertheless, Baroness Stowell has cautioned the country about missing out on the "AI gold rush."

A report by The Lords Communications and Digital Committee underscored the significance of substantial language models like generative power AI tools, naming ChatGPT specifically, while also underscoring the necessity for clarity in copyright laws and governmental regulation. The report advised against unnecessary regulation that may inhibit the progression of AI within the country.

The Lords Communications and Digital Committee is a select committee of the House of Lords, one of the two houses of the Parliament of the United Kingdom. This committee is tasked with scrutinising and examining issues related to communications, digital technology, media, and telecommunications.

Bailey emphasises that combining the advantages of AI with the human workforce will promote efficiency and innovation. The House of Lords committee similarly appeals to businesses to acknowledge the gains of AI rather than concentrating solely on the perceived risks.

Dr Henry Balani, the Global Head of Industry and Regulatory Affairs at Encompass Corporation, corroborated this viewpoint. He commented, "As Generative AI continues to dominate headlines across financial services, it brings potentially exciting benefits for financial institutions." He went on to suggest ways in which it can bolster financial crime-fighting, "When it comes to fighting financial crime, for example, AI can improve the accuracy and speed of detection by analysing large data sets."

Yet, Dr Balani further stressed, "It is important to remember that Generative AI will not replace vital roles in the sector, such as that of Know Your Customer (KYC) analysts, now or in the foreseeable future." Instead, he sees the technology serving to quicken existing procedures and enhance the work of analysts, enabling them to identify financial crime risks more rapidly and thoroughly.

Concluding his statement, Dr Balani noted that "The maximum value of Generative AI can only be realised if banks and financial institutions have already put in place robust digital and automated processes to optimise the quality of data collated and deliver deeper customer insights." By prioritising this now, he believes institutions will be well-positioned to leverage the evolving technology as it continues to evolve and mature.