Governor Andrew Bailey says the Monetary Policy Committee is submitting meeting minutes to an LLM to see how it summarises them as the Bank tries to predict how traders will interpret its language in the age of AI.
The Bank of England is using a large language model to summarise minutes from its Monetary Policy Committee meetings to anticipate market interpretation.
Governor Andrew Bailey describes the LLM summaries as helpful but expresses mixed views and wider concern about AI risks.
Bailey has previously warned about several AI-related threats to financial stability: inflated asset valuations, cyber risks, and automated trading, plus potential rapid job displacement.
# What happened
Committee (MPC) through a large language model (LLM). Governor Andrew Bailey said the Bank submits the minutes to the model to see how it summarises them and to help predict how markets and traders might interpret the Bank's language.
# Why the Bank is doing this
The Bank wants to understand how the wording in its minutes and quarterly monetary policy reports will be read and acted on by market participants now that LLMs are widely used. Bailey said the summaries produced by the model give the Bank "a sort of summary view" that is useful for anticipating market reaction.
# What the governor said about AI
Bailey told reporters he has "very mixed views" on large language models. He said the technology has been "very helpful" in producing summarised views, but he also raised broader concerns about AI. Earlier in the year he warned of a "triple whammy" of risks: soaring stock valuations tied to AI, rising cyber-attack risks, and the effects of automated trading. He has also warned that AI could destroy jobs faster than expected.
# The practical aim
Using an LLM to pre-read minutes is a tactical step: the Bank is testing how the same words it publishes might be distilled, framed, and relayed back into markets when market participants use AI tools. That can help the Bank anticipate immediate market responses to its language and possibly adjust wording or communication strategy accordingly.
Bailey has been publicly cautious about AI's impact on financial stability. He has suggested regulators may need new powers and oversight to manage risks where advanced models could behave unpredictably or be used to amplify market moves.
# What this means for markets and the public
# Bottom line
England is experimenting with an LLM as a tool to preview how its public communications might be summarised and fed back into markets. Governor Bailey finds the summaries useful but remains cautious about broader AI risks, which he has framed around asset valuations, cyber threats, automated trading, and labour-market disruption.
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