Key facts
- Bailey said AI-related activity accounted for nearly one-fifth of UK GDP growth since early 2026, per the Bank of England's November 2026 Monetary Policy Report.
- Global AI-related debt issuance reached approximately $450 billion by early September, roughly double the 2025 level, Bailey said.
- Bailey said the annual productivity boost from AI and digital technologies was a modest 0.5% over the past three years and could rise to 0.9% annually over the next three years.
- Bailey said AI spending is part of why the UK economy has shown resilience despite geopolitical events and swings in energy prices.
Bank of England Governor Andrew Bailey said in a speech at the Swiss Institute of International Studies in Zurich on November 9, 2026 that it may take longer for returns from heavy AI investment to match traders' speculative expectations. He also flagged financial stability risks tied to what he called an "AI asset price bubble."
Bailey said AI investment is part of why the UK economy has shown resilience, even as geopolitical events and swings in energy prices push in the other direction. He said the strength is showing up most clearly in business services.
The Bank of England's November 2026 Monetary Policy Report found that AI-related activity has accounted for nearly one-fifth of UK GDP growth since early 2026, according to Bailey. Global AI-related debt issuance reached approximately $450 billion by early September, roughly double the 2025 level, he said.
On productivity, Bailey said the annual boost from AI and digital technologies has been a modest 0.5% over the past three years, and he expects it could rise to 0.9% annually over the next three years. He has repeatedly described AI as the next general-purpose technology, pairing that optimism with warnings about the financial risks that come with a fast-moving investment boom.