World Economic Forum President Børge Brende has warned that the global economy may be heading toward three potential financial bubbles — in cryptocurrency, artificial intelligence, and debt — as technology stocks continue to tumble worldwide.
Speaking during a visit to São Paulo, Brazil’s financial hub, Brende said that while market corrections are not yet cause for panic, valuations in several sectors appear “overblown” after months of record highs.
“We could possibly see bubbles moving forward. One is a crypto bubble, second an AI bubble, and the third would be a debt bubble,” Brende cautioned, noting that government debt levels are the highest they’ve been since 1945.
He added that while artificial intelligence holds enormous potential to drive global productivity, it also poses risks to job security — particularly in sectors reliant on white-collar workers. “What you could, worst case, see is a ‘Rust Belt’ in big cities that have many back-office workers who can more easily be replaced by AI and automation,” he said, referencing recent job cuts by major corporations such as Amazon and Nestlé.
Despite the risks, Brende stressed that technological progress has historically led to higher productivity and, ultimately, greater prosperity. “Increased productivity is the only way over time to increase prosperity — then you can pay people better salaries and create a more prosperous society,” he said.
