The Bank for International Settlements (BIS) warns that an artificial-intelligence downturn could trigger broader economic and financial spillovers, alongside other risks to global prosperity. In its assessment, the BIS highlights a potential AI bust as one of the most concerning threats, tying it to possible effects beyond technology markets and into the wider economy. The BIS also points to inflation pressures and fiscal stress as additional major vulnerabilities facing countries and financial systems. The warning emphasizes that shocks originating in one area—such as AI-driven market repricing or changes in expectations about productivity—can ripple through credit conditions and overall growth. While the sources do not specify particular countries, sectors, or timelines, they present the BIS message as a current risk alert focused on how interconnected markets can amplify adverse developments. Overall, the BIS framing links AI-related risks with macroeconomic instability and potential strain in credit markets, underscoring concern about how multiple stress factors could reinforce one another.