Central bank of central banks warns: AI investment frenzy of a trillion dollars may turn into 'investment slump'

CoinFeed June 28 news, according to the Financial Times, the Bank for International Settlements (BIS) warned that the massive spending boom by big tech companies in the field of artificial intelligence could end in a destructive and prolonged 'investment slump', thereby disrupting financial markets and harming global economic growth. In its annual economic report released on Sunday, the BIS outlined the risks of the 'current AI frenzy', stating: 'If returns disappoint, it could trigger a sudden contraction in financing, turning the capital expenditure boom into a lasting investment slump, with potential knock-on effects on financial conditions.' This warning comes amid growing market concerns about the scale of equity and debt financing driving the AI revolution and the resulting turbulence in global markets. Technology groups have flocked to global credit markets, raising hundreds of billions of dollars to fund AI projects by taking advantage of corporate credit spreads near their lowest levels this century.