In its Annual Economic Report, published on Sunday, the Bank for International Settlements (BIS), known as the central bank for central banks, warned that the enormous spending on AI is accumulating financial vulnerabilities that could amplify any future shock and spread from markets into the wider economy.
Presenting the findings, BIS general manager Pablo Hernández de Cos said the message was one of "urgency", with policymakers urged to act before any reversal makes the eventual adjustment more painful.
