Beyond Valuations: Long-Term Financial Risks from the AI Build-Out

Pierce George and Padma Sharma
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Pierce George: https://www.kansascityfed.org/research-staff/pierce-george/
Padma Sharma: https://www.kansascityfed.org/people/padmasharma/

Economic Bulletin, 2026, 4

Abstract: Large-scale investments associated with the artificial intelligence (AI) build-out have encompassed a broad range of industries, financial institutions, and markets, generating investor exuberance but also concerns about the disorderly repricing of assets. The financial risks associated with AI investment extend beyond short-term valuation distortions and may entail significant long-term structural shifts.

Keywords: artificial intelligence; AI boom; financial risks; structural risk (search for similar items in EconPapers)
Date: 2026
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