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.

The Bank for International Settlements flagged AI capex, circular financing deals, and poorly disclosed asset pledging as systemic risks in its annual report.

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

The Bank for International Settlements (BIS) has cautioned about the financial dangers linked to the rapid growth of AI, pointing to issues of overinvestment and high valuations.…

The Bank for International Settlements says “excessive” spending on new AI data centres and opaque transactions risked a financial meltdown similar to the GFC.

The BIS warned AI exuberance and debt-fueled investment could trigger cascading defaults and a global financial crisis.

Even if the current AI boom falters, demand for digital infrastructure in Asia – especially in developing countries – will remain strong.

The vast surge of investment in AI, which has powered global stock markets to record highs, risks ending in a financial bust, the Bank for International Settlements warns, as the…

India's central bank has identified soaring AI stock valuations globally as a financial stability risk, warning of potential market spillovers. Despite this, the Reserve Bank of…

Fitch Ratings highlights AI and massive digital infrastructure spending as significant global credit risks. While AI promises efficiency, it threatens jobs and tax revenues,…