Business

Regulating AI 'not the right place to start' says Bailey

BBC Business · 2026-09-30

AI SUMMARY

• What happened: Andrew Bailey, the Governor of the Bank of England, stated that regulating artificial intelligence (AI) is not the immediate priority; instead, he advocates for rigorous testing to identify vulnerabilities and establish safeguards against risks associated with AI technologies. • Why it matters: Bailey's comments highlight the increasing recognition of the significant risks posed by AI and the need for a structured approach to its development, balancing innovation with safety measures. • What to watch next: The ongoing discussions among AI industry leaders, policymakers, and researchers will likely influence future AI regulations and safety standards, as well as the pace of AI development in the UK and globally.

**Title: Bank of England Governor Advocates for Rigorous Testing Over Immediate AI Regulation**

**Date: [Insert Date]**

In a recent article published on Substack, Andrew Bailey, the Governor of the Bank of England, expressed his views on the regulation of artificial intelligence (AI), suggesting that immediate regulatory measures are not the most effective starting point. Instead, he emphasized the importance of conducting thorough testing to identify vulnerabilities and establish safeguards against potential risks associated with AI technologies.

Bailey acknowledged the "real and increasingly significant" risks posed by AI, highlighting the need for a structured approach to its development. He stressed that while the benefits of AI are substantial, it is crucial to implement a system that allows for intervention and sets clear boundaries for AI operations.

The discussion surrounding AI's rapid advancement and its implications for society has gained momentum in recent weeks. Leaders from prominent AI companies, including Anthropic and OpenAI, have called for a slowdown in the technology's development. They advocate for an internationally coordinated strategy to assess risks and implement necessary safeguards. Notably, OpenAI recently decided against releasing its latest AI model due to safety concerns.

In contrast, figures like former President Donald Trump have dismissed the idea of a slowdown, asserting that the United States must maintain its lead in AI development over competitors like China. Following a summit with AI executives, Trump announced that a "morally binding" agreement had been reached, placing responsibility on companies to ensure the safety of their technologies.

In the UK, Bailey pointed out that significant efforts are underway to test AI systems, including the establishment of the AI Security Institute. He believes that these initiatives will contribute to the development of standards for AI safety. However, he also noted the necessity for the pace of progress to increase, while advocating for a cautious approach.

Bailey acknowledged that the testing process may reveal unexpected behaviors in AI models, which should not be interpreted as failures of the testing itself. Instead, he argued that such outcomes underscore the importance of rigorous testing in understanding and mitigating risks.

While Bailey's stance prioritizes testing, he indicated that this should not preclude the eventual establishment of a formal regulatory framework. He suggested that, over time, regulations may evolve as the understanding of AI risks deepens.

As the conversation around AI continues to evolve, Bailey's comments reflect a growing recognition of the need for a balanced approach that encourages innovation while safeguarding against potential dangers. The ongoing dialogue among industry leaders, policymakers, and researchers will likely shape the future landscape of AI development and regulation.

Source: BBC Business
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