BIS Warns AI Boom Poses Risk of Global Financial Crash

The Bank for International Settlements (BIS) has cautioned that the rapid expansion of the artificial intelligence (AI) sector could lead to a global financial crash. The BIS highlighted a 'fiscal-financial stability nexus' and warned that if 'hyperscalers' (large cloud service providers) reduce or halt their aggressive capital expenditure on AI infrastructure, many companies in the supply chain could struggle to generate revenue and service their debt, potentially risking financial stability.