Bank for International Settlements warns of AI investment bubble and potential financial shock

The Bank for International Settlements (BIS) warned in its annual economic report that the rapid surge in artificial‑intelligence investments—projected to exceed $1 trillion in infrastructure spending by 2025‑26—could trigger a broad financial shock if investor sentiment wanes. The BIS highlighted that AI company valuations are high, debt levels are rising, and chip price spikes may feed inflation, creating systemic risks for markets and central‑bank policy.

In the Netherlands, accountants and auditors noted that while AI will automate routine tasks, it will not replace the profession. Experts emphasized the need for robust risk management, greater transparency over IT and cloud‑provider dependencies, and vigilance against cyber‑security threats as the sector becomes increasingly data‑driven.