The IMF has warned that the AI investment boom could trigger a broad financial crisis if the expected profits fail to materialise, with risks amplified by concentrated investments in a small number of tech companies and circular financing arrangements between AI firms. The watchdog also highlighted rising government bond yields and cyberattacks — potentially aided by AI tools — as additional threats to global financial stability. While the IMF is not predicting an imminent collapse, it is urging regulators to more closely monitor excessive borrowing, concentrated holdings, and cyber resilience before these risks escalate.
