Bank of England Governor Andrew Bailey warned that the surge of money invested in artificial intelligence could produce financial-market shocks if the sector fails to deliver the returns investors expect. He said the central bank is monitoring AI investment very carefully and that asset prices could face a correction, noting that not every company or investor will emerge as a winner. Nvidia is valued at $5.5 trillion, while Alphabet, Meta, Microsoft and Amazon are spending hundreds of billions of dollars on AI. Anthropic and OpenAI are also preparing to sell shares in the U.S. market, potentially bringing hundreds of billions of dollars more into the sector. Bailey said AI could strengthen economic growth and help speed work supporting the Monetary Policy Committee, although it would remain a tool rather than a decision-maker. He also warned that AI could expose software vulnerabilities, enable cyberattacks and spread deepfakes. His comments came as long-term government bond yields reached multidecade highs, including more than 6% for 30-year UK bonds and 5.34% for U.S. 10-year debt. The Bank has separately warned that rising AI-related borrowing, opaque financing structures, concentrated positions and shared assumptions about infrastructure demand could amplify losses if earnings or adoption disappoint.