Economists at the central bank believe an AI market correction is “likely”
Economists at the European Central Bank (ECB) warned that stock markets – still running strong on high AI hopes – are “likely” to see a correction in a Monday blog post.
“We should be aware of that and prepare,” the ECB specialists wrote, discussing the risk that a bust will follow the current AI boom.
Since OpenAI’s chatbot ChatGPT sparked a race to launch generative AI tools from late 2022 onwards, certain tech companies involved in developing artificial intelligence have seen their valuations rise to dizzy heights.
This is especially true of so-called “Magnificent Seven” US tech giants – which include the likes of Meta, Microsoft and AI chipmaker Nvidia. The latter is currently global leader by market capitalisation – with a valuation of over five trillion US dollars.
