IMF warns an AI-market correction could threaten global financial stability as rising bond yields and cyber incidents add to risks

The International Monetary Fund warned that a correction in artificial intelligence-related markets could threaten global financial stability, with risks remaining elevated despite market resilience, Anadolu English reported, citing the IMF’s Global Financial Stability Report.

Officials speaking during the IMF-World Bank Annual Meetings in Bangkok identified disappointing investment or profitability expectations in AI, rising sovereign bond yields and cyber incidents as major risks that could trigger market stress.

The fund also warned that existing financial-system vulnerabilities could amplify shocks from these threats. Stress tests showed that most banks remain resilient, but the share of weaker institutions is increasing.

Non-bank financial institutions, including pension funds, insurers and hedge funds, also face risks linked to less liquid assets and higher leverage.