Federal Reserve's Daly: AI bubble does not currently threaten financial stability

Jinse Finance reported that Mary Daly, President of the Federal Reserve Bank of San Francisco, recently stated that the potential artificial intelligence (AI) bubble in the stock market may not threaten overall financial stability. Daly emphasized: "We should be cautious about categorizing all bubbles as financial bubbles. At present, there is little evidence to suggest that the AI bubble falls into this category." She pointed out that from a research and economic perspective, investment in the AI sector is more like a "beneficial bubble"—even if investors do not receive all the returns expected by early enthusiasts, productive outcomes will remain rather than nothing at all. Specifically, Daly gave three reasons: First, the AI capital expenditure boom is driven by financially sound large companies, rather than a wave of high-risk startups, and thus does not pose a threat to financial stability; second, even if investors are overly enthusiastic, it can still support the development of this transformative technology, similar to how internet technology remained after the internet bubble burst; third, AI may be as transformative as the iPhone, unlocking unknown opportunities and enhancing overall economic productivity. (Global Market Report)