The Bank for International Settlements warned Monday that excessive enthusiasm for artificial intelligence could fuel dangerous stock market valuations and threaten broader economic stability.
In its annual report, the Basel-based institution highlighted several warning signs, including richly valued stocks, complacent investors, circular financing arrangements and potential spillover effects in credit markets.
The BIS, often called the central bank of central banks, said the combination of these factors creates conditions similar to those preceding past market downturns.
The organization called for regulators and policymakers to monitor AI-related investment trends and take steps to prevent unsustainable asset bubbles from destabilizing the financial system.
