The Bank for International Settlements (BIS) highlights several emerging risks to global financial stability, focusing on rising public and private debt, persistent inflation pressures, and growing uncertainty around artificial intelligence in financial markets. In its assessment, the BIS points to debt accumulation as a continuing vulnerability, arguing that higher leverage can reduce resilience if economic conditions deteriorate or credit quality weakens. It also flags that inflation, even if easing in some regions, remains a potential source of instability by affecting interest rates, household and business costs, and the pricing of financial assets. In addition, the BIS notes that AI is increasingly used in market and investment processes, which can introduce new forms of risk, including faster transmission of shocks and challenges in monitoring and controlling AI-driven strategies. Across these themes, the BIS frames the outlook as dependent on how governments, financial institutions, and regulators manage debt sustainability, inflation dynamics, and the governance of AI-enabled systems.