Zhou Xiaochuan: Research and Prepared Plans Should Be Developed to Guard Against Financial Risks Caused by AI Sector Investment Failures

Former Governor of the People's Bank of China Zhou Xiaochuan stated at the roundtable forum "AI and Productivity Transformation: Macroeconomic Impacts Under Technological Leap" of the 2026 Bund Annual Conference that regarding the evolution of artificial intelligence technology, we will undoubtedly face a scenario where some investments succeed while others fail. However, considering the enormous amount of capital currently flowing into artificial intelligence and its related infrastructure, a partial wave of investment failures could trigger financial turmoil and escalate into a crisis, which would require large-scale interventions to support the economy and bail out certain financial institutions. Therefore, relevant research and contingency plans should be developed, with corresponding policy tools reserved in the policy toolkit to address such turmoil and its impacts.

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