The extraordinary rise of artificial-intelligence companies has triggered optimism across global markets — but regulators now warn that the exuberance may be concealing deeper financial instability

In its latest Financial Stability Report, the Bank of England cautioned that elevated valuations and heavy debt financing within the AI sector pose “significant risks to financial stability.”  While Britain’s largest banks have passed stress tests, analysts warn that a correction in AI stock prices or a broader market shock could ripple through global credit and investment markets.

At the same time, the Organisation for Economic Co-operation and Development (OECD) forecasts modest — but fragile — global growth in 2025: about 3.2 %.  The OECD acknowledges that heavy investment in AI and tech is helping stabilize growth, but warns that rising trade barriers, market volatility, and debt pressures could overturn gains quickly.

This tension — between technological optimism and systemic risk — plays out against a backdrop of shifting geopolitical fault-lines and supply-chain uncertainty.  As companies and governments scramble to capitalize on AI’s potential, many are also reevaluating long-term exposure: to debt, to global supply-chain disruptions, and to regulatory backlash.

For investors, policymakers, and citizens alike, the question looms: is the current AI-driven boom a sustainable engine of growth — or a bubble built on shaky ground? The coming months will test whether global financial stability can weather the weight of sky-high valuations and rapid technological disruption.