Bank of England warns of growing risk that AI bubble could burst (Guardian) [View all]
Kalyeena Makortoff
Banking correspondent
Wed 8 Oct 2025 07.14 EDT
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However, the Bank of England’s financial policy committee (FPC) warned on Wednesday: “The risk of a sharp market correction has increased.
“On a number of measures, equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence. This … leaves equity markets particularly exposed should expectations around the impact of AI become less optimistic.”
It said investors had not fully accounted for these potential risks, warning that “a sudden correction could occur” should any of them crystallise, resulting in finance drying up for households and businesses. The FPC added: “As an open economy with a global financial centre, the risk of spillovers to the UK financial system from such global shocks is material.”
Faith in the AI boom has recently been rattled by research from the Massachusetts Institute of Technology, which showed that 95% of organisations are getting zero return from their investments in generative AI.
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more: https://www.theguardian.com/business/2025/oct/08/bank-of-england-warns-of-growing-risk-that-ai-bubble-could-burst
The NANDA report is available by request only, apparently. It has been discussed in Forbes and Fortune:
https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/
https://www.forbes.com/sites/jasonsnyder/2025/08/26/mit-finds-95-of-genai-pilots-fail-because-companies-avoid-friction/
= new reply since forum marked as read