A draft U.S. Department of the Treasury report warns that risks to the broader economy could increase if artificial intelligence market growth “mimics” conditions that preceded the dotcom bubble and its later bust about 25 years ago, according to accounts of the draft report. One outlet says the document’s analysis is based on work by career Treasury analysts and was obtained through a third party, which described the report’s assessment of how AI-sector dynamics could transmit stress to the economy. The reporting states that the draft focuses on the possibility that AI-related investment and business activity could become overstretched, potentially leaving the market more vulnerable to a sharp downturn. Both sources characterize the warning as an “economic mayhem” or “economic shockwaves” scenario tied to historical comparisons to the dotcom era. While the reporting does not provide the full report’s text or specific recommendations, it indicates Treasury is evaluating potential systemic consequences rather than limiting the concern to individual AI companies. The draft is framed as a risk assessment that links speculative or concentrated market behavior to possible wider economic effects.