Bank of France governor warns of financial risks from artificial intelligence investments

On November 2, 2026, at the World in Progress (WIP) conference in Barcelona, Bank of France Governor and ECB Governing Council member Emmanuel Moulin warned about the systemic risks posed by the current scale of investments in artificial intelligence. He highlighted that many corporations are increasingly relying on debt to finance these massive capital expenditures, which are not currently yielding profits proportional to the scale of spending.

Moulin emphasized that a potential correction in the valuations of U.S.-based AI companies could cause significant financial turbulence within Europe. He drew parallels to the dot-com bubble of the late 1990s and early 2000s, expressing concern that the reliance on debt rather than equity financing poses a threat to financial stability. Despite these warnings, Moulin maintained optimism regarding the long-term capacity of artificial intelligence to enhance productivity, while cautioning that current speculative expectations are high.

While no specific regulatory action was announced, the comments underscore growing unease among central bank officials regarding the debt-driven funding models utilized by major technology firms. The situation remains a point of focus for monitoring European financial stability in the coming months.