# Bank of England warns an AI crash could plunge UK into recession

> Source: <https://www.politico.eu/article/bank-of-england-andrew-bailey-warn-ai-uk-recession/?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication>
> Published: 2026-07-07 12:19:54+00:00

The U.K. is at risk of recession if the artificial intelligence bubble pops, the Bank of England warned today, as investors increasingly park their cash into tech stocks.

A price correction in AI stocks, driven by a change in productivity and profitability among tech-led companies, could cause a 2.2 percent fall in U.K. GDP, the Bank warned in its financial stability report today.

“The risk of a sharp correction in equity markets remains high,” said Bank of England Governor Andrew Bailey, warning of a "triple whammy" of AI-related risks to the economy: outsized bets on AI stocks, slower adoption of the technology than predicted and questions over which firms will be winners in the sector over the long run.