The Bank for International Settlements (BIS), an organization that brings together the world's major central banks, stated on Monday that the valuation of global stock markets over the past two years, driven by artificial intelligence, is showing increasing signs of vulnerability. The BIS is considered the central bank of central banks and serves as a forum for cooperation among monetary institutions.
In a new report released on Monday, the BIS stated that investors are becoming increasingly cautious about the ability of future AI investments to generate profits. Concerns are growing as large US technology companies continue to increase their debt levels to finance their projects in the field of artificial intelligence.
According to Reuters, the strong AI impulse that had been sustaining the rise in equity markets and contributing to economic resilience is losing steam. The report suggests that the initial market enthusiasm for the technology may be undergoing revision in light of doubts about the real financial returns of AI investments.
