Pablo Hernandez de Cos cautions AI could shake global finance
AI is growing fast: the head of the Bank for International Settlements, Pablo Hernandez de Cos, says this could shake up global finance.
At a conference in India today, he pointed out that much of the money fueling AI comes from complicated and not-so-transparent debt and private credit.
With tech giants set to spend over $1 trillion on AI in just 2025 and 2026, worldwide investment is expected to leap from $500 billion now to $4 trillion by 2030.
AI boosts productivity but risks jobs
AI can seriously boost productivity (think up to 65% more efficient in fields like coding and consulting), but there are concerns about job losses and market bubbles.
Hernandez de Cos compared today's AI hype to the dot-com era, reminding everyone that high valuations and uncertain profits can make things unstable.
He also noted that while advanced economies are leading the way, countries like India have a chance to catch up thanks to strong digital infrastructure.