Fitch warns: an AI market pullback is becoming a major global credit risk

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ME News message, July 28 (UTC+8): Rating agency Fitch warned that the AI hype and the risk of a possible pullback are becoming major global credit risks, heightening concerns about unprecedented levels of early spending amid soaring technology valuations and uncertain future returns. To date, no other major rating agency has made such a direct statement. In its third-quarter global risk outlook, Fitch said that the credit environment is still mainly driven by two near-term risks: increasing vulnerability to market corrections related to AI, and ongoing uncertainty associated with the conflict between the US and Iran. Fitch reiterated recent warnings from global regulators that the AI hype is becoming ever more intertwined with economic growth and capital markets, especially in the United States, where the risk of large-scale selloffs has increased. Fitch said: “The scale of AI investment is so large that the level of exposure of the economy and the entire capital market to this kind of adjustment is quite significant.” (Source: BlockBeats)
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