Submission + - IMF Warns of the real AI threat: Debt (imf.org)
Three salient risks could trigger a sharp tightening of financial conditions and market turmoil. Weaker or less durable investment and profitability in artificial intelligence could lead to a correction in AI-related asset prices, amplified by rising leverage and concentrated exposures. Resurgent inflation or fiscal concerns could drive a sharp rise in sovereign bond yields, with potentially broad repercussions across financial markets. Meanwhile, increasingly sophisticated cyber threats pose growing risks as finance becomes more digital and interconnected.