AI investment boom supports markets, but slowdown could trigger sharp repricing: RBI Governor Malhotra

The artificial intelligence (AI) investment cycle has emerged as a key support for global financial markets, however any slowdown in investments or earnings could have an adverse impact as it can also trigger a sharp repricing of financial assets, particularly across the AI value chain, Reserve Bank of India Governor Sanjay Malhotra said on Friday.

During his address at the Kautilya Economic Conclave, “The AI investment cycle has been a major support for global markets,” while he cautioned that any moderation in AI-related investment or earnings could lead to a sharp correction in valuations and financial assets.