Bank of England warns AI stock bubble rivals 2000 dotcom peak

The Bank of England has warned that the current artificial intelligence (AI) stock market bubble is comparable to the dotcom bubble of the 2000s. According to the central bank, market concentration in the AI sector has not been this extreme in the past 50 years. The surge in AI-related stocks, driven by the hype around ChatGPT and other AI technologies, has led to a rapid increase in the valuations of these companies. The Bank of England has expressed concern that this could lead to a significant market correction, similar to the collapse of the dotcom bubble. The central bank has emphasized the need for caution and prudence in the AI sector, as the rapid growth and market concentration could pose risks to financial stability. Investors are being advised to exercise due diligence and not to be swayed by the hype surrounding AI technologies. Overall, the Bank of England's warning underscores the potential for a significant market correction in the AI sector, and the need for careful regulation and oversight to mitigate the risks.