Bank of England Sounds Alarm on AI-Related Investment Risks
The Bank of England's Financial Policy Committee (FPC) has expressed concerns about the rapid growth in artificial intelligence (AI)-related investment and its potential impact on financial stability. The committee notes that AI-related financing continues to grow rapidly, with global debt issuance estimated at around $450 billion as of early September.
This is more than double the total issuance recorded during all of 2025, according to Morgan Stanley estimates. The FPC also cites estimates from JP Morgan analysts that AI-related capital expenditure financed through debt issuance could reach around $4.1 trillion between 2026 and 2030.
The committee highlights risks linked to the combination of increasing leverage, limited transparency, and 'circular arrangements' in AI-related financing. These factors could make it harder to assess risks and increase losses if expectations around AI investment fail to materialise.