Race for investment could turn AI boom into bust – BIS study
Paper warns of fragility through overcommitment and circular financing
The race to invest in artificial intelligence is on track to surpass previous technological booms that ended in sharp corrections and a wider economic fallout, according to research from the Bank for International Settlements.
In a paper published on July 14, author Phurichai Rungcharoenkitkul says the current AI investment boom shares many of the features found in historical episodes of market exuberance, such as the US canal mania of the 1830s, the UK railway mania of the 1840s and the dotcom
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