Treasury Has an Internal Report Warning About the Dangers of an AI Bubble - News of the United States - NOTUS

The US Treasury Department has produced an internal draft report warning about potential risks from the artificial intelligence market, according to a copy obtained by NOTUS. The report draws comparisons between the current AI boom and the dotcom bubble of the late 1990s, stating that some aspects of the AI market echo that period. It also notes that AI firms are more deeply entrenched in the broader economy than their dotcom predecessors were.

The draft report, which is not yet finalised, outlines concerns about overvaluation and speculative investment in AI companies. It warns that a sudden correction could have broader economic implications because AI technologies are integrated into sectors including finance, healthcare, and logistics. The Treasury has not publicly commented on the report, and it is unclear whether it will lead to any formal policy recommendations.

The report was obtained by NOTUS, a news organisation that covers politics and policy. The Treasury Department did not respond to a request for comment. The draft represents an internal assessment and may not reflect the official position of the administration. Similar warnings have been issued by some economists and analysts regarding AI market valuations.