The Bank for International Settlements (BIS) issued a warning on Sunday about the possibility of an AI investment bubble bursting, which could disrupt credit markets as severely as the 2008 financial crisis. In its annual report, the Basel-based BIS identified risks driven by AI alongside inflation and fiscal pressures as significant challenges requiring close attention. The report highlights that disappointing returns on AI investments might lead to a sharp market pullback, causing broad financial instability.
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