Bank of England Governor Andrew Bailey has urged North East firms investing in artificial intelligence (AI) to be ambitious but cautious, describing the technology as potentially the “next big breakthrough” in global innovation.
During his visit to the region on Wednesday (October 8), Mr Bailey said he had been impressed by the level of technology and automation already being developed in local factories, noting that several sites he toured were “pretty heavy on robots”.
He also said it reflected the growing role of AI in the regional industry.
During his visit to the region, Mr Bailey visited Darlington's Economic Campus, Beamish Museum, and Komatsu in Birtley, among other pit stops.
“It does impress me. I mean it really does,” he said.
“Both factories I’ve been around have been really interesting because they’ve both been pretty heavy on robots, in terms of the technology they’re developing.”
The Governor said the Bank of England itself is experimenting with AI and machine learning to improve efficiency in areas including coding and economic modelling, but stressed that the approach should be "measured and responsible".
“I would say, you know, go ahead with your eyes open because honestly that’s what we’re doing in the Bank of England,” he said.
“We’re experimenting with it at the moment - you’ve got to work out how to put it to work.”
Mr Bailey described AI as the most likely candidate for the next major cycle of technological innovation.
“A lot of our lower productivity growth over the past 15 years has been linked to cycles of technology,” he said.
“AI is the most likely candidate for the next big cycle of innovation.”
He added that AI could not replace people entirely but would change how industries operate, making training and retraining essential for the workforce of the future.
“It’s not going to replace people in jobs,” he said.
“But it does mean we have to put a lot of emphasis on training people, retraining people, and making sure young people come out into the labour force knowing how to use AI technology.”
At Beamish, Mr Bailey delivered a presentation on the outlook for the UK economy to an audience of representatives of businesses and other organisations from across the North East.
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Mr Bailey met CEO Rhiannon Hiles and Chair Chris Loughran during a tour of the award-winning museum, and heard more about its regional and national contribution to the economy, tourism and culture.
Governor Andrew Bailey said: “Beamish is not only a remarkable museum, but a vital regional institution that contributes significantly to the local economy, tourism and cultural heritage.
“I was delighted to share the Bank’s outlook on the UK economy and to hear directly from organisations driving growth and innovation in this part of the country.”
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