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AI spending boom could end in global bust, report says
Semafor • • business
Key Points:
- The Bank for International Settlements (BIS) warned that heavy investment in AI could lead to a prolonged "investment bust," potentially threatening the global economy.
- The BIS annual report highlighted that disappointing returns on AI investments by major tech companies might cause a sharp decline in funding for the sector.
- The current AI investment surge has surpassed previous historical bubbles, such as those seen with railways and the internet, in terms of scale.
