ECB warning of AI bubble: Contagion and concentration risk spreads
Warnings of a potential AI bubble have not exactly been thin on the ground lately. All the same, a blog post on August 17 by four senior economists at the European Central Bank (ECB) garnered extra attention, thanks to its source and prognosis. “Extremely optimistic valuations raise questions: do today’s stock market prices reflect a rational bet on the transformative technology?” the blog post notes, adding that a replay of the turn-of-the-century dotcom bubble and bust is far more likely. Concentration...
