The Bank of England has sounded the alarm, warning of an intensifying risk of a “sudden correction” in global financial markets driven by the spending frenzy on artificial intelligence.

As Reuters points out, it’s the institution’s clearest warning yet that we could be on the precipice of an AI disaster.

“The risk of a sharp market correction has increased,” said the Bank of England’s financial policy committee during a Wednesday meeting, as quoted by Reuters, warning that “equity market valuations appear stretched, particularly for technology companies focused on artificial intelligence.”

“Should expectations around the impact of AI become less optimistic,” markets could be left “particularly exposed,” the bank cautioned.

Concerns over an AI bubble bursting have grown lately, with ana

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