U.S. Federal Reserve Chair Kevin Warsh warned of economic upheaval as the AI revolution unfolds, stating that “the rapid growth of AI represents a monumental paradigm shift” and that “this revolution is still in its first or second inning.” The remarks came at the European Central Bank annual central bank forum, which concluded on July 1 in Sintra, Portugal, where AI emerged as a central theme across monetary policy, financial stability, and supervision. The Bank for International Settlements cautioned that the current AI investment boom resembles historical episodes such as the 1840s British railway mania, the 1920s asset bubble, and the 1990s dot-com bubble. Torsten Slok, chief economist at Apollo Global Management, analyzed that AI-related equipment investments have boosted U.S. gross domestic product by approximately 1 percentage points, but warned that “financial stability is threatened whether AI performs beyond expectations or falls short.” Itay Goldstein, a professor at the University of Pennsylvania, stated that “AI algorithms are demonstrably capable of colluding to manipulate pricing pathways, creating bubbles and triggering crashes.” Tobias Adrian, an International Monetary Fund director, questioned how supervisors can evaluate loan decisions made by AI agents, calling it “akin to a black box.” Participants agreed that if AI advances as expected, it could replace human labor on a massive scale, while if it underperforms, massive investments could turn sour.