The AI Boom Could Create a Financial Crisis

ABOUT THE EPISODE The AI boom could transform the economy, but could the way it is being financed create the next major financial crisis?

Joao Gomes, Wharton Professor of Finance and Senior Vice Dean of Research, Centers, and Academic Initiatives, argues that the Federal Reserve needs to look beyond inflation and pay much closer attention to the financial risks building around AI investment.

Gomes explains the parallels with the housing crisis and internet boom, the growing role of private credit, and why the Fed needs to rethink how it monitors financial stability.

ABOUT THE PODCAST This Week in Business features interviews with Wharton faculty about the latest news, fascinating trends, and issues impacting both consumers and the business world. Episodes are recorded at the Wharton School and published twice per week.

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