Bank of England Sounds Alarm on AI-Related Debt Risks
The Bank of England has sounded a warning about the risks posed by artificial intelligence (AI) to debt markets and financial security. According to minutes from its quarterly Financial Policy Committee meeting, the central bank is concerned that the rapid growth in AI-related debt issuance exposes capital markets to potential developments in the technology.
The BoE noted that between January and early September this year, a total of $450 billion was raised worldwide through debt issued to finance AI investments. This figure more than doubles the amount raised for all of 2025, as estimated by Morgan Stanley. In comparison, Britain's planned debt issuance for this year is around $330 billion.
The BoE also highlighted concerns about high valuations of AI companies and the potential for expectations of future development and adoption to not materialize.