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news Project Syndicate 2026-05-20

Caution Urged on AI Market Euphoria Amidst Financial Risks

Despite rapid advancements and performance improvements in generative AI, the current market excitement may be unwarranted. A review of potential downsides is advised as AI firms increasingly rely on debt financing.


<p>Although generative AI tools have improved rapidly and now outperform humans across many tasks, the market's current euphoria may not be justified. With AI firms increasingly resorting to debt financing, it is worth pausing to consider all the things that could go wrong.</p>

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