The artificial intelligence (AI)-linked rally that has seen world stock markets soar over the last two years is showing growing signs of vulnerability, global central bank umbrella body, the Bank for International Settlements (BIS), said yesterday.Investors were becoming "increasingly cautious" about the profitability of future AI investments, especially as the leverage of major US tech firms continued to rise, the BIS said in a report."The AI momentum, which had propelled equity markets and contributed to the resilience of the global economy of the last year, has begun to show growing signs of vulnerability," BIS economic analysis head Frank Smets told reporters on Friday ahead of the report’s publication.
Visitors walk past a display depicting artificial intelligence and a human hand at the China International Supply Chain Expo in Beijing on June 22.
AI-connected stocks were down sharply yesterday after the heads of a number of top AI firms warned at the weekend that the pace of the technology’s development needed to be slowed to prevent threats to humanity.The BIS report also pointed to an uncertain global backdrop of strains on public finances, exacerbated by geopolitical tensions and volatile energy prices.
