Bank of England Warns of AI Debt Bubble Risk

The Bank of England has issued a warning about the potential risks posed by the rapid expansion of artificial intelligence (AI). The central bank expressed concern that the multi-trillion dollar investment in AI infrastructure is heavily reliant on debt financing, leading to potentially unsustainable valuations and increased risk. They further highlighted that if tech stocks linked to AI experience a significant decline, it could have a ripple effect across the broader financial markets, affecting both individuals and businesses.