# Can AI make cutlery? - speech by Andrew Bailey

> Can AI make cutlery? - speech by Andrew Bailey. A business report — sourced from Bank of England Speeches.

*Section: Business — By Marcus Vale (Editor-in-Chief & Business & Markets Editor) — Published July 12, 2026 — 1 min read*

Canonical URL: https://dailyjunction.org/business/can-ai-make-cutlery-speech-by-andrew-bailey
Tags: ai, bank of england, business, canada, cutlery, make, speech

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The Governor of the Bank of England has used an unusual metaphor to frame the central question about artificial intelligence and the economy: can AI make cutlery?

In a speech to a technology conference, Andrew Bailey argued that the economic impact of AI would depend on whether the technology could do more than generate text, images and code — whether it could produce physical goods and services that people wanted to buy. "Generative AI is remarkable," he said. "But the economy is not made of words. It is made of things — food, houses, cars, medical care, haircuts. The question is whether AI can help us to produce more of those things, or whether it is, in the end, a very sophisticated form of entertainment."

Bailey's speech was a contribution to the debate about whether AI would produce a productivity revolution comparable to the industrial revolutions of the past, or whether its effects would be more limited. The optimists argue that AI will transform every sector of the economy, raising productivity growth to levels not seen since the mid-20th century. The pessimists argue that AI is a powerful tool for manipulating information, but that its effects on the physical economy — the world of atoms rather than bits — will be modest.

The Governor did not take a definitive position, but his metaphor suggested a degree of scepticism. "Cutlery is a useful test," he said. "It is simple, physical, universally used. If AI can make cutlery better or cheaper, it can probably transform the economy. If it cannot, we should calibrate our expectations accordingly."

## Sources

- [Bank of England Speeches](https://www.bankofengland.co.uk/speech/2026/may/andrew-bailey-speech-at-cutlers-feast-sheffield)

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