IMF and BoE warn AI boom risks ‘abrupt’ stock market correction

Financial TimesWednesday, October 8, 2025 at 2:00:06 PM
IMF and BoE warn AI boom risks ‘abrupt’ stock market correction
The International Monetary Fund (IMF) and the Bank of England (BoE) have raised alarms about the rapid rise of artificial intelligence (AI) and its potential to trigger a sudden correction in stock market valuations, which are nearing levels reminiscent of the dotcom bubble. This warning is significant as it highlights the fragility of current market conditions and the risks investors face, suggesting that the excitement around AI could lead to overvaluation and subsequent financial instability.
— via World Pulse Now AI Editorial System

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Bank of England warns of AI bubble risk
NegativeFinancial Markets
The Bank of England has issued a warning regarding the potential risks associated with an artificial intelligence (AI) valuation bubble, noting that stock price valuations in the US are currently at their most stretched levels since the dotcom bubble burst. This alarming trend raises concerns about the sustainability of these inflated valuations.