BoE Governor Bailey says regulating AI is not an appropriate entry point

The substantive distinction is between regulating the technology itself and regulating its uses inside supervised firms: central banks and prudential supervisors have historically preferred the latter, extending existing model risk, outsourcing and operational resilience frameworks rather than writing AI-specific rules. That stance has tended to be the path of least resistance across jurisdictions, since it keeps accountability with boards under existing senior-manager regimes. What is worth watching is whether the position holds across the supervisory complex, since the prudential and conduct arms and the financial policy committee have not always spoken with one voice on novel risks, and whether it is formalised in discussion papers or supervisory statements. For rates and sterling the transmission is negligible; the relevance sits with the compliance and governance burden for banks, insurers and market infrastructure.