Speaking at a parliamentary hearing, Governor Yang Chin-long told lawmakers that the AI boom has become a major driving force in Taiwan's economy, while warning that the central bank must carefully monitor the risks of speculative capital expenditures financed by aggressive corporate borrowing within the tech sector.

The Financial Policy Committee stressed that valuations ‘have also become more stretched’ amid concerns of a potential AI bubble.

The Bank of England is closely monitoring AI's growing risks to financial stability, fearing its impact could surpass previous tech waves.