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Bank of England warns AI debt surge could spark market correction

Original: AI debt surge raises risk of sharp market correction, warns Bank of England

The Bank of England has warned that a rapid build-up of debt linked to artificial intelligence could trigger a sharp correction in financial markets. In its latest assessment of financial stability, the central bank flagged the scale of borrowing and investment flowing into AI as a growing vulnerability, saying valuations could reverse abruptly if expectations are not met.

Why now: Markets and policymakers are increasingly focused on whether AI-driven investment is creating an unsustainable bubble.

Bank of Englandartificial intelligence

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