In an era of technological advancement, artificial intelligence (AI) companies are increasingly shaping the narrative of modern businesses. However, as these companies take on more debt to fuel their ambitions, top economists are voicing concerns over the potential risk this could pose to the financial system.
According to recent reports, borrowing in the AI sector has shown a significant increase over the past few years. This rapid accumulation of debt in such a volatile market is seen as a potential hazard to the financial system.
AI companies, in their bid to gain a competitive edge and achieve their growth trajectories, are leveraging borrowed capital, which could have potentially detrimental repercussions if not handled prudently.
Leading economists have therefore urged regulatory boards to implement necessary measures in order to mitigate the potential impacts. Read More
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