Artificial intelligence could be fundamentally disruptive but help boost productivity in Britain's economy, posing a challenge to regulators who should be open to new rule-making approaches, a Bank of England policymaker said on Tuesday.

"The challenge is therefore to develop a regulatory framework that fosters the flowering of creativity and innovation but takes into account the potential financial stability risks," BoE Financial Policy Committee member Randall Kroszner said in a speech.

"Regulators, however, should be open to new approaches that might shape these frameworks." (Reporting by Huw Jones; editing by Mark Heinrich)