IMF & Bank of England Warn of Potential AI Bubble
IMF & Bank of England Warn of Potential AI Bubble Both the International Monetary Fund (IMF) and the Bank of England have signaled concern that optimism about artificial intelligence (AI) is driving equity valuations to stretched levels — raising the risk of a sharp market correction. Key points IMF: Managing Director Kristalina Georgieva told the Milken Institute audience that “uncertainty is the new normal — buckle up,” and noted that optimism about AI’s productivity potential is helping to fuel surging global equity prices. Source: IMF/Milken Institute transcript. Bank of England: The Financial Policy Committee has warned that the risk of a sharp market correction has increased and that equity valuations appear stretched, particularly for technology companies focused on AI. The FPC also noted downside risks if AI capability or adoption…
