Central banks warn of potential artificial intelligence investment bubble

Several major central banks warned in June 2026 that a dangerous investment bubble may be forming around artificial intelligence. The Bank of England said companies are spending too much on AI, and that this could cause serious problems in global stock markets. The Bank for International Settlements also published a report with similar concerns. Central bank officials then discussed these risks further at a conference in Portugal in early July. The banks identified possible disruptions to jobs, bank lending, energy demand, and financial security. During this period, Oracle's stock price fell by more than 40 percent in a single month. The central concern is that enormous sums of money are flowing into AI infrastructure, and the economic returns may not justify the cost.