AI Bubble Burst Warning Issued by Bank of England Governor

The Bank of England's governor has warned that artificial intelligence could trigger a global economic downturn if the AI bubble bursts.

Andrew Bailey, in his capacity as chairman of the Financial Stability Board, wrote to G20 finance ministers about the potential volatility caused by energy shocks from the US-Iran war and the fragilities in sovereign debt markets.

He expressed concern that a 'future market correction' could spread across borders, particularly due to high valuations and market concentration in AI companies and hyper-scalers.