The International Monetary Fund (IMF) has issued a warning that the current surge in AI investments bears similarities to the dot-com era, with potential for a sharp correction in valuations. Despite this, the IMF considers the risk of a broader banking crisis to be low, as these investments are primarily equity-funded by cash-rich technology firms. According to IMF data, AI-related investments have increased by less than 0.4% of US GDP since 2022, compared to 1.2% during the dot-com bubble. IMF Chief Economist Pierre-Olivier Gourinchas highlighted that while AI's transformative potential might not meet immediate expectations, the equity financing structure of these investments limits their direct exposure to the financial system. This suggests that even if AI valuations were to correct sharply, the impact on the broader economy would be contained.