The U.K. is at risk of recession if the artificial intelligence bubble pops, the Bank of England warned today, as investors increasingly park their cash into tech stocks.
A price correction in AI stocks, driven by a change in productivity and profitability among tech-led companies, could cause a 2.2 percent fall in U.K. GDP, the Bank warned in its financial stability report today.
“The risk of a sharp correction in equity markets remains high,” said Bank of England Governor Andrew Bailey, warning of a "triple whammy" of AI-related risks to the economy: outsized bets on AI stocks, slower adoption of the technology than predicted and questions over which firms will be winners in the sector over the long run.
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politico.eu — original article
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