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AI Bubble Poses Risks for EMs, South African Central Banker Says

Bloomberg Technology•Thursday, November 20, 2025 at 4:13:56 PM
NegativeArtificial Intelligence
AI Bubble Poses Risks for EMs, South African Central Banker Says
  • Lesetja Kganyago, South Africa's central bank Governor, has raised alarms about the risks of an AI stock bubble threatening emerging markets. This warning comes amid a rapid increase in AI investments, which some analysts fear may not be sustainable.
  • The implications of a potential bubble are critical for emerging markets, which could face severe economic repercussions if the AI sector experiences a downturn. Such vulnerabilities highlight the interconnectedness of global financial systems.
  • The discourse around AI investments is intensifying, with contrasting views on whether the current growth is driven by genuine demand or speculative behavior. Concerns about overspending by tech companies and the potential for market corrections are prevalent, indicating a cautious sentiment among investors.
— via World Pulse Now AI Editorial System
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