Asheville, North Carolina, United States, 1 September 2026 – Financial Stability Board chair Andrew Bailey has warned that high technology valuations, leverage and concentrated cross-investment could turn an artificial-intelligence correction into a broader global downturn. In a letter to Group of Twenty finance ministers, Bailey said financial markets remain vulnerable to a disorderly correction that could spread across borders. He highlighted increased borrowing, elevated valuations and capital concentration among major AI developers and hyperscale cloud providers.
The warning also covered cyber risk, including the possibility of simultaneous disruption across multiple financial firms as advanced models become more capable. Bailey called for globally coordinated safeguards around model release and deployment. Energy-market volatility and fragile sovereign-debt markets could compound the transmission of an AI-related shock. The figures should be considered within the broader setting of financial stability and artificial intelligence investment, where short-term market reactions can differ from the longer-term economic effect.
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