Source The Guardian · Published · Open the original ↗
Safety
Threat of AI share crash puts world financial stability at risk, says IMF
High valuations and debt put sector in danger, while fund also warns on government borrowing and cyber-attacks
The threat of an AI share price crash rippling out across global markets is putting world financial stability at risk, the International Monetary fund has warned.
In its twice-yearly Global Financial Stability Report, the IMF highlighted the sky-high valuations for AI companies along with their increasing debt pile as one reason that risks in the system are “elevated”.
“The consequences of an AI correction could be global,” it warned. Aside from the US, Asian markets would be most exposed, and the UK and euro area potentially more insulated - though investors with US holdings would be hit.
The opening of the report, quoted unchanged from The Guardian. The full text continues at the source.