Andrew Bailey, the Governor of the Bank of England, has warned of a severe downturn in global stock markets if the AI bubble bursts.
In a letter to G20 finance ministers, Mr Bailey raised concerns over the economic fallout if the debt-fuelled AI investment boom begins to unravel.
He warned that the soaring levels of debt that have been used to fund AI “could amplify a future market correction”.
If the valuation of AI companies starts to plummet, then investors face the prospect of losing trillions of dollars overnight. This could trigger a dangerous chain reaction if they are then forced to sell other assets. READ MORE...
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