Could The AI Bubble Burst?

The artificial intelligence boom has attracted extraordinary levels of investment, transformed technology markets and created expectations of a new era of productivity, but a warning from the world’s leading central bank organisation suggests that the consequences could be felt far beyond the technology industry if financial returns fail to match the hype.

Why Are Economists Worried About An AI Bubble?

The Bank for International Settlements (BIS), often described as the central bank for central banks, has compared the current AI investment boom with previous periods of technological excitement, including Britain’s railway mania, the electrification boom of the 1920s and the dotcom era.