{"id":22482,"date":"2026-06-28T09:29:53","date_gmt":"2026-06-28T09:29:53","guid":{"rendered":"https:\/\/jobuzo.com\/en\/how-ai-boom-exposes-investors-to-risk-while-a-downturn-could-see-a-fast-crash\/"},"modified":"2026-06-28T09:29:53","modified_gmt":"2026-06-28T09:29:53","slug":"how-ai-boom-exposes-investors-to-risk-while-a-downturn-could-see-a-fast-crash","status":"publish","type":"post","link":"https:\/\/jobuzo.com\/en\/how-ai-boom-exposes-investors-to-risk-while-a-downturn-could-see-a-fast-crash\/","title":{"rendered":"How AI boom exposes investors to risk, while a downturn could see a fast crash"},"content":{"rendered":"
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As the global financial system struggles to keep pace with the artificial intelligence investment boom<\/span> and capital flows surge through loosely regulated, non-bank channels, a key international organisation has warned that an AI downturn<\/span> could develop into a sharper, faster crash than a traditional banking crisis.<\/div>\n
In its annual economic report released on Sunday, the Bank for International Settlements (BIS) said funding for AI was increasingly channelled through hedge funds<\/span>, private credit vehicles and other non-bank intermediaries.<\/div>\n

These firms commonly operated with less oversight than conventional lenders, which could create blind spots, according to Zhang Tao, BIS chief representative for Asia and Pacific regions.<\/p>\n

BIS, a Switzerland-based institution that is often dubbed the “bank of central banks”, said in its report that the system could unwind far more rapidly in a downturn.<\/p>\n

“If the market has any sort of correction, the interconnectedness of the financial system and interplay of vulnerabilities could mean the speed of a correction could be much faster than previous banking crisis episodes,” Zhang said in an interview with the South China Morning Post in Hong Kong.<\/p>\n

Such a rapid unwind, he warned, would ripple through financial markets<\/span> and raise broader stability concerns.<\/div>\n<\/div>\n

How AI boom exposes investors to risk, while a downturn could see a fast crash<\/sub><\/p>\n","protected":false},"excerpt":{"rendered":"

As the global financial system struggles to keep pace with the artificial intelligence investment boom and capital flows surge through loosely regulated, non-bank channels, a key international organisation has warned that an AI downturn could develop into a sharper, faster crash than a traditional banking crisis. In its annual economic report released on Sunday, the…<\/p>\n

Read More “How AI boom exposes investors to risk, while a downturn could see a fast crash”<\/span> »<\/a><\/p>\n","protected":false},"author":1,"featured_media":22483,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/22482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/comments?post=22482"}],"version-history":[{"count":0,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/posts\/22482\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media\/22483"}],"wp:attachment":[{"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/media?parent=22482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/categories?post=22482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobuzo.com\/en\/wp-json\/wp\/v2\/tags?post=22482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}