Will the AI Bubble Trigger a Financial Crisis?

Authors

• Hilary J. Allen, American University Washington College of LawFollow

Abstract

INTRODUCTION: Experts might not expect a stock-market crash to cause a financial crisis, but what if they are wrong? With leverage built up in so many parts of the system and asset-price movements so closely correlated, the current US financial system looks like a tinder box just waiting for a spark to land on it.

External Links

https://www.project-syndicate.org/commentary/ai-bubble-will-it-cause-a-financial-crisis-by-hilary-j-allen-2025-10

Source Publication

Project Syndicate

Repository Citation

Hilary J. Allen, Will the AI Bubble Trigger a Financial Crisis?, Project Syndicate (2025).
Available at: https://digitalcommons.wcl.american.edu/pub_disc_media/645