B
Benj Edwards
AI bubble
is in the air, and among the chorus of voices warning of an AI-fueled market bubble (which includes OpenAI CEO
and Amazon's
) is the Bank of England, which
on Wednesday that global financial markets could face a sharp correction if investor sentiment turns negative on AI.
The UK central bank said US stock valuations resemble those seen near the peak of the on some measures, with AI-focused companies making up an unprecedented portion of market value.
In its derived from a meeting of its Financial Policy Committee that took place last week, BoE wrote that "the risk of a sharp market correction has increased." Reuters that it's the BoE's strongest warning to date about potential AI-driven market declines. The committee, chaired by Governor Andrew Bailey, said spillover risks to Britain's financial system from such a shock were "material."
The UK central bank said US stock valuations resemble those seen near the peak of the on some measures, with AI-focused companies making up an unprecedented portion of market value.
In its derived from a meeting of its Financial Policy Committee that took place last week, BoE wrote that "the risk of a sharp market correction has increased." Reuters that it's the BoE's strongest warning to date about potential AI-driven market declines. The committee, chaired by Governor Andrew Bailey, said spillover risks to Britain's financial system from such a shock were "material."
