BIS Warns AI Investment Boom Echoes Past Bubbles

The Bank for International Settlements (BIS), in its 2026 Annual Economic Report, warned that the surging AI investment boom is following the same overinvestment pattern as past technological revolutions such as canals, railroads and the internet, and could trigger a protracted investment slump and recession if the expected productivity gains fail to materialize. Known as the "central bank of central banks," the BIS stated that the current scale, pace and expectations of AI spending are raising downside risks for the broader economy, a view echoed by several major outlets.