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BOJ says AI boom may have eased financial conditions, warns of market risks

The Bank of Japan said the boom in artificial intelligence investment may have loosened financial conditions, while cautioning that markets could face renewed volatility. In its assessment, the central bank flagged the risk that an abrupt correction in AI-related assets could disrupt funding and asset prices, adding to growing international debate over how much of recent market strength rests on AI enthusiasm.

Why now: Investors and policymakers are increasingly worried that AI-driven market gains could reverse and destabilise financial systems.

Bank of Japanartificial intelligence

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