BIS Head Warns AI Boom Poses New Financial Stability Risks Amid Trillion-Dollar Investments

Pablo Hernandez de Cos, head of the Bank for International Settlements (BIS), has cautioned that the rapid growth of artificial intelligence is creating new financial stability risks. He noted that spending on AI infrastructure is already at a scale significant enough to influence global economic conditions, with estimates of over $1 trillion in investment by the world's largest tech firms between 2025 and 2026. Concerns include the increasing reliance on debt and private credit for financing, leading to opacity and interconnectedness in the financial system.