Fitch Warns: AI Market Correction Is Becoming a Major Global Credit Risk
In its third-quarter “Global Risk Outlook,” the rating agency Fitch warned that the artificial intelligence (AI) boom and its potential market correction are becoming a major global credit risk. The report notes that AI investment is massive, and the economy and capital markets as a whole are significantly exposed to such a correction; the cyclically adjusted price-to-earnings ratio of the U.S. S&P 500 Index is already approaching levels seen during the dot-com bubble of the late 1990s. Fitch anticipates that future uncertainties regarding AI revenue, regulation, competition, and labor market disruptions could trigger a potentially significant and prolonged market correction, with widespread macroeconomic implications.
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