BANGKOK/WASHINGTON, Oct 13 (Reuters) – The International Monetary Fund warned on Tuesday against “complacency” in global financial markets, citing risks from an artificial intelligence-driven selloff, rising government bond yields, or cyberattacks as potential threats facing still-resilient markets.
The IMF said in its Global Financial Stability Report that AI investments have so far helped offset economic drags from war in the Middle East and overall policy uncertainty. But it noted “growing evidence” that AI capabilities may not require as much investment, or the potential economic gains may not be as large as expected.
“An AI market correction will affect the real economy,” Athanasios Vamvakidis, deputy director in the IMF’s Monetary and Capital Markets Department, said at a press briefing in Bangkok.
He said while global risk sentiment was very strong, underpinned by solid earnings and optimism about AI, such “resilience is not necessarily safety”. An AI correction would have impacts on wealth and investment that could spill into broader markets, he said.
The risk of such a selloff, as well as a spike in sovereign bond yields or a major cyberattack, were among “plausible near-term catalysts” that policymakers should monitor, the IMF said in its report.
While each of these risks might be manageable on its own, they also could trigger vulnerabilities with potential systemic implications, Vamvakidis said.
Should the momentum in AI investment slow, the IMF noted growing leverage in the sector could exacerbate any shock by triggering forced selling and higher volatility. For example, hyperscalers now represent 10% of global investment-grade bond issuance, up from less than 1% in 2024.
IMF Cites AI Slowdown, Spiking Yields As Looming Global Market Risks
