All Chips In?
Commentary on the Bank of England’s AI Financial Stability Report
The Bank of England’s October 2025 report on AI-related asset valuations raises important questions about financial stability in an era of unprecedented technology investment.
This commentary examines the report through three historical lenses: the AI winters of the 1970s to 1990s, Charles Mackay’s Extraordinary Popular Delusions and the Madness of Crowds (1841), and Carl Benedikt Frey’s The Technology Trap (2019). The central finding is a factor-of-ten divergence in automation estimates that should give any observer pause for thought.
Subscribe to read the full report, with key insights into assessing bubble risk and historical precedents such as Mackay’s manias.
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