The Artificial Human AI's Bubble Trouble?: 2. What are the consequences of an AI economic crash?
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Jan 28, 2026 
Jerry Kaplan, Silicon Valley entrepreneur and AI historian, Dame Diane Coyle, Cambridge economist on macro and pensions, and Nathanael Benjamin from the Bank of England on financial stability. They explore whether AI valuations are a bubble. They discuss contagion to pensions and credit, debt-financing risks, market concentration, overinvestment in infrastructure, and who might survive a correction.
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Tech Valuations Reach Into Pensions
- Pension funds mirror market composition, so tech-driven rises feed ordinary savers' portfolios.
- A sharp correction in tech stocks would therefore directly hit many people's pensions.
Unclear Translation From AI To Economic Value
- Translating AI research into company productivity and profits remains the critical unknown.
- Economists question whether AI will meaningfully boost firm-level earnings as engineers expect.
Three Financial Pathways Of AI Risk
- The Bank of England tracks three AI pathways: adoption in the real economy, uptake in finance, and AI firms' use of finance.
- The last pathway—AI firms leaning on the financial sector—has raised the biggest red flags.