Business leaders at this year’s World Economic Forum (WEF) in Davos broadly agreed that artificial intelligence is moving into a more exacting phase.
Microsoft’s chief executive, Satya Nadella, warned that AI risks becoming an economic bubble if its benefits remain concentrated within technology companies rather than delivering broad productivity gains. “A tell-tale sign that it’s a bubble would be if all we are talking about are the tech firms,” he said during a conversation with BlackRock’s boss, Larry Fink. “If the focus is only on what’s happening on the technology side, then it’s purely supply-side.”
Meanwhile, Google DeepMind’s CEO, Demis Hassabis, cautioned that parts of the current investment surge are running ahead of real-world deployment, despite strong underlying demand.
But AI is only one part of a bigger risk picture. Experts warn that financial markets may be approaching not one, but three potential bubbles.
What is the triple bubble?
WEF president, Børge Brende, has warned that markets may be approaching a triple bubble. “One is a crypto bubble, second an AI bubble, and the third would be a debt bubble,” he told reporters during a visit to Brazil in November last year.
A sharp drop in Bitcoin’s price has prompted fears of a wider cryptocurrency slump, while soaring global public debt – now above $100tn (about £74tn) – is adding to concerns about financial stability and constraining governments’ ability to respond to shocks.
These risks are interconnected. Elevated AI valuations fuel investment and risk-taking. Crypto volatility amplifies swings in market sentiment and high debt levels limit policy flexibility if conditions turn. Together, they increase the likelihood that a correction in one area could spill rapidly into others.
For businesses, the implication is clear. A triple bubble does not just threaten investors – it shapes capital availability, customer demand and boardroom tolerance for long-term bets.
Companies making large technology or transformation investments need to stress-test their strategies against tighter financing conditions, sharper scrutiny of returns, and faster shifts in sentiment.
Business leaders at this year’s World Economic Forum (WEF) in Davos broadly agreed that artificial intelligence is moving into a more exacting phase.
Microsoft's chief executive, Satya Nadella, warned that AI risks becoming an economic bubble if its benefits remain concentrated within technology companies rather than delivering broad productivity gains. “A tell-tale sign that it’s a bubble would be if all we are talking about are the tech firms,” he said during a conversation with BlackRock's boss, Larry Fink. “If the focus is only on what’s happening on the technology side, then it’s purely supply-side.”
Meanwhile, Google DeepMind's CEO, Demis Hassabis, cautioned that parts of the current investment surge are running ahead of real-world deployment, despite strong underlying demand.
