United Kingdom, Sept. 1 -- Bank of England governor Andrew Bailey has warned that a collapse in the artificial intelligence sector could trigger a global economic downturn and expose financial systems to significant cybersecurity risks.

Bailey, writing as chairman of the Financial Stability Board (FSB), told G20 finance ministers that high stock market valuations, increased borrowing and heavy investment in a small group of technology companies could amplify a future market correction.

He said: "The issue is not simply that investors are borrowing more.

"Leverage is interacting with high valuations and market concentration."

Bailey also highlighted growing financial links between AI companies and the large technology firms providing t...