The International Monetary Fund has warned that global financial markets face several risks, including a possible correction in artificial intelligence investments, rising government bond yields and growing cyber threats. The warning came as financial leaders gathered for international meetings focused on the world economy. The IMF said that markets should not assume recent resilience will continue without interruption.
Investment in artificial intelligence has supported many technology companies and helped lift economic activity. However, some investors have questioned whether the profits from the technology will eventually justify the huge spending on data centres and computing systems. If expectations fall sharply, companies could reduce investment and share prices could decline. Such a change could affect suppliers, lenders and other businesses connected to the AI industry.
The IMF also pointed to rising borrowing costs for governments. High debt levels can make countries more vulnerable when investors demand higher returns for lending money. A sudden rise in yields may increase the cost of financing public services and existing debt. Cybersecurity is another concern because financial institutions rely on complex digital systems and outside technology providers. The IMF said banks remain broadly resilient, but some parts of the global banking system have weaker capital buffers than before. The organisation urged governments and companies to strengthen risk management and prepare for changes in market conditions.
