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Central banks warn of systemic risks as trillions pour into AI investments

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Central banks and financial regulators worldwide are raising alarms about the sustainability of massive AI investments. Companies are collectively channeling trillions of dollars into AI systems and advanced computing infrastructure. The Bank for International Settlements has urged caution, drawing a distinction between technological innovation and guaranteed financial returns. Historically, transformative technologies have attracted funding that outpaces their actual economic benefits, echoing patterns seen in past market bubbles. Regulators are being called upon to closely examine the financial structures underpinning AI development and the broader systemic risks they may pose.

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Central banks warn of systemic risks as trillions pour into AI investments · ShortSingh