Fitch Ratings highlights AI and massive digital infrastructure spending as significant global credit risks. While AI promises efficiency, it threatens jobs and tax revenues, particularly in developed nations. Investors are also concerned about private credit's growing complexity, transparency issues, and potential contagion from equity markets, despite its unlikely systemic risk.

Bank for International Settlements says AI funding is funnelled through loosely regulated private credit channels, raising stability fears.

The BIS warns AI infrastructure spending by hyperscalers could lead to a bust, flagging $100 billion in bond issuance and hidden shadow borrowing risks.

Rising debt, AI uncertainty and inflation threaten the global economic outlook