wire / 2026-10-20-c114
Former PBOC Governor Warns of Financial Risks from AI Investment Failures
A former central bank governor would like contingency plans for the AI build-out. Central bankers generally ask for those before the bill arrives.
The facts
Zhou Xiaochuan, former governor of China's central bank, warned that massive investments in AI and related infrastructure could trigger financial instability if some projects fail. He urged policymakers to prepare contingency plans and policy tools to mitigate potential economic and financial crises linked to AI investment risks.