UK central bank warns: AI's debt-fueled boom could backfire

Business Dec 03, 2025

The Bank of England just flagged a big risk—AI companies are growing fast, but much of it is on borrowed money.
If AI stock prices suddenly drop, that debt could cause wider financial trouble, not just for tech firms but for everyone.

Why does this matter to you?

If the AI bubble bursts, it could mean higher borrowing costs and less spending power for regular people in the UK.
Plus, since AI has been a huge part of recent US economic growth and stock market gains, any shakeup could ripple through global markets.
The takeaway? As cool as rapid AI progress is, even central banks say we need to keep an eye on the risks behind the hype.