The European Central Bank warns that the artificial intelligence boom may end with a correction.

Economists at the European Central Bank have warned that the market's enthusiasm for artificial intelligence has driven technology stock valuations to levels comparable to those seen during the internet bubble, suggesting that a market correction may be on the horizon. Unlike the early 21st century, policymakers have very limited room to cut interest rates or implement fiscal stimulus should a significant market decline occur. The European Central Bank stated that Europe faces particularly notable risks due to investments in the "Big Seven" tech giants in the U.S., coupled with high valuations of local European stocks.