AI Bubble? What if the Bubble Isn't the Biggest Risk in Markets
Australian Financial Review
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Details
- Date Published
- 16 Oct 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 17 Oct 2025, 12:13 pm
Description
Investors are right to keep watch for an AI bubble that clearly isn’t priced in. But the risk of missing out on a market that keeps going could be painful too.
Summary
The article by James Thomson in the Australian Financial Review examines the potential for an AI market bubble, contrasting it with other significant market risks. It questions whether fears of an AI bubble might overshadow other existential threats that could impact the global financial system. The discussion resonates with historical financial crises, suggesting that while AI's rapid growth is noteworthy, investors should remain vigilant about various types of market risks. While not directly focused on catastrophic AI risks, the piece offers insights into the broader economic landscape influenced by AI technologies.
Body
James ThomsonColumnistOct 17, 2025 – 11.09amSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginBlame Steve Eisman. Or Michael Burry. Or perhaps most accurately, Michael Lewis, the journalist whose famous book,The Big Short, turned them into legendary figures in the financial world.These days, James Aitken says, it feels like everyone is on the lookout for a bubble. The dotcom crash, the global financial crisis and even George Soros’ famous war against the British pound are seared into the market’s collective memory. Talking about left tail risks – those extreme, low-probability negative events that blow up markets every generation or so – is just really exciting.Loading...SaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreInvestingPrivate creditAIAFR WeekendPerspectiveAnalysisAustralian economyJames ThomsonColumnistJames Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.Connect withJamesonTwitter.EmailJamesatj.thomson@afr.comFetching latest articlesHow we shot the 2025 Power issueMatthew DrummondAustralia’s 10 most powerful people in 2025The year’s top 10 power players (that aren’t people)4 leaders who came to Australia with nothing, and made it to the topRachael BoltonThis investment guru backed Nvidia in 2016. Here are his other tipsHow a maths whizz fled Russia and built a firm whose stock is up 780pcMusson’s new QVB store and an artsy bottle of Dom PérignonEugenie KellyThe architects creating ‘flexible’ high-end housesAudi packs in the features in its attractive new wagonMystery recording in Waislitz fight with sister-in-lawMax MasonBillionaire Lederer steps up campaign to tip out Elanor in fund raidBastas’ $7b pharmacy and beauty empire posts eightfold jump in profit