BOE's Breeden Warns Time Is Running Out to Address AI Market Risks

MT Newswires Live07:21

Bank of England Deputy Governor Sarah Breeden said regulators are running out of time to address the risk of autonomous AI agents causing market disruption, Bloomberg reported Monday, citing a Wharton School podcast interview.

Bloomberg reported that the BOE is considering testing "kill switches" that could limit or stop trading if AI models cause market stress, although officials do not yet know how such a system could operate.

Breeden said AI agents could create powerful feedback loops if they respond similarly to the same market signals, Bloomberg reported. She said regulators need to understand the risks before agentic trading becomes common in financial markets.

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