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Artificial intelligence could help make it easier to build chemical and biological weapons, Prime Minister Rishi Sunak has warned.
In a worst-case scenario, society could lose all control over AI, preventing it from being switched off, Mr Sunak said.
While the potential for harm is disputed, we must not "put our heads in the sand" over AI risks, he argued.
In a speech aiming to present the UK as a world leader on AI, the PM said the tech was already creating new jobs.
He added that development of the technology would catalyse economic growth and productivity.
The prime minister's speech on Thursday morning set out the capabilities and potential risks posed by AI - including cyber attacks, fraud and child sexual abuse - following the publication of a government report.
Mr Sunak said the risk of human extinction should be a "global priority" before adding: "This is not a risk that people need to be losing sleep over right now and I don't want to be alarmist."
Experts are divided about the threat posed by AI and previous fears about other newly emerging technologies have not fully materialised.
Mr Sunak said the UK would not "rush to regulate" AI because it was "hard to regulate something you do not fully understand".
The UK is hosting a two-day AI safety summit at Bletchley Park in Buckinghamshire next week, with China expected to attend.
The decision to invite China at a time of tense relations between the two countries has been criticised by some.
But supporters of the decision have argued that an effective discussion on safeguarding AI requires China's presence.