Threat of AI share crash puts world financial stability at risk, says IMF

High valuations and debt put sector in danger, while fund also warns on government borrowing and cyber-attacks

The threat of an AI share price crash rippling out across global markets is putting world financial stability at risk, the International Monetary fund has warned.

In its twice-yearly Global Financial Stability Report, the IMF highlighted the sky-high valuations for AI companies along with their increasing debt pile as one reason that risks in the system are “elevated”.