The Bank of England is considering introducing an AI "kill switch" to stop trading bots from causing a meltdown in financial markets.
Sarah Breeden, the deputy governor, said officials were running simulations on what would happen if AI traders all tried to execute similar trades at the same time.
She told central bankers at an event in Sintra, Portugal, that the capabilities of AI "could amplify volatility" when financial markets come under stress.
As a result, the Bank has been researching how to combat so-called "herding behaviour" by AI tools, along with Germany's Bundesbank and the Bank for International Settlements.
Ms Breeden told the conference that central banks were exploring "mitigants" such as "circuit breakers or kill switches that would limit or stop trading market-wide if faulty AI models cause market meltdown".