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The Bank of England warned that technical companies are sensitive to the risk amidst the potential “disappointing” progress around the artificial intelligence (AI) that the growing evaluation will decline rapidly.
The bank’s Financial Policy Committee (FPC) said, the risk of “rapid improvement” in financial markets has increased.
The latest meeting minutes of FPC wrote: “On many measures, the evaluation of the equity market appears to be increased, especially for technology companies focused on artificial intelligence.
“When it is combined with increasing concentration within the market indices, equity markets are particularly exposed when expectations about the impact of AI are less optimistic.”
It states that there is a risk that AI capacity or adoption “disappointing” progress, or increasing competition may reduce evaluation in the entire region.
The FPC stated that “physical obstacles in AI progress”, including electricity, data or commodity supply chains, can also damage evaluation, especially for firms that are expected to benefit from more AI investment.
It has come at a time when there has been a boom in the evaluation of technical companies amidst the hope of adopting AI technology worldwide.
Big technology companies like Nvidia, Google And Microsoft During the last year, everyone has seen an increase in their share prices.