How the AI bubble could pop and take down the global economy, according to the BIS

The central bank for central banks is concerned about the eye-watering sums being invested into AI, and it's raising the specter of a global recession should the bubble burst. In its annual report for 2026, the Bank for International Settlements compared the current craze to historical events, including canal and British railway mania in the 1800s, electrification exuberance of the 1920s, and the dotcom boom of the 1990s. The report states: “all shared one common trait: a genuine technological