South Korean President Yoon Suk Yeol warned world leaders Wednesday about the dangers of fake news and the mishandling of artificial intelligence, calling for the formation of a UN body to regulate the digital sphere.

"If we fail to curb the spread of fake news resulting from the misuse of AI and digital technologies, our freedom will be at risk," Yoon told the United Nations General Assembly in New York.

"The market economy anchored in liberal democracy will be in peril, and our very future will be under threat," he added.

"We can advance the digital culture only when fair access to AI and digital technologies, as well as the safe use of digital technologies, are ensured."

Korea plans to host a global forum on AI, Yoon said, to discuss the creation of a regulating agency.

Many countries are already grappling with the challenge of balancing the risks and promise of artificial intelligence.

In July US President Joe Biden hosted a tech summit and got top American tech companies to pledge guardrails against risks from artificial intelligence, ranging from cyber-attacks to fraud.

British Prime Minister Rishi Sunak has announced a world-first summit on artificial intelligence to be held later this year, seeking a leading role for the UK in limiting potential doomsday risks.

Sunak wants a future global AI regulator to be based in London, according to sources, arguing that Britain has the requisite expertise and tech sector.