Threat of AI share crash puts world financial stability at risk, says IMF

Threat of AI share crash puts world financial stability at risk, says IMF

The International Monetary Fund warned that inflated valuations and rising debt in the artificial‑intelligence industry could trigger a sharp market decline, posing a threat to worldwide financial stability. The fund also highlighted risks from expanding government borrowing and increasing cyber‑attack activity, urging policymakers to monitor these vulnerabilities closely. Such a downturn could affect banks, investors and sovereign debt markets globally.