When the AI Bubble Bursts, Who Will Be Left Holding the Bag?

The Center for Economic and Policy Research (CEPR) warns that the current artificial intelligence investment boom may be a bubble, and when it bursts, investors and the broader economy could face significant losses. The report highlights that AI companies have attracted massive funding, with valuations outpacing actual productivity gains, and cautions that a correction could lead to widespread financial fallout. CEPR urges policymakers to consider regulatory safeguards to mitigate potential economic disruption from an AI market downturn.