The Artificial Human AI's Bubble Trouble?: 2. What are the consequences of an AI economic crash?
Jan 28, 2026
Jerry Kaplan, Silicon Valley entrepreneur and AI historian, Dame Diane Coyle, Cambridge economist on macro and pensions, and Nathanael Benjamin from the Bank of England on financial stability. They explore whether AI valuations are a bubble. They discuss contagion to pensions and credit, debt-financing risks, market concentration, overinvestment in infrastructure, and who might survive a correction.
AI Snips
Chapters
Transcript
Episode notes
Scale And Uncertain Payoff Of AI Spending
- Massive AI investments may be productive but the scale is uncertain and valuations feel ginormous.
- Dame Diane Coyle warns that circular investments and cross-equity stakes add hidden financial risk.
Tech Valuations Reach Into Pensions
- Pension funds mirror market composition, so tech-driven rises feed ordinary savers' portfolios.
- A sharp correction in tech stocks would therefore directly hit many people's pensions.
Unclear Translation From AI To Economic Value
- Translating AI research into company productivity and profits remains the critical unknown.
- Economists question whether AI will meaningfully boost firm-level earnings as engineers expect.