The sustainability of the artificial intelligence investment boom has become a key area of risk for global growth and financial stability, said Chia Der Jiun, managing director of the Monetary Authority of Singapore (MAS), at the release of MAS’ annual report on Tuesday (Jul 28). Global growth, investment and financial market performance have become highly dependent on projections of large and increasing investment in data centres and semiconductor chips, especially in the US and in semiconductor-exporting Asian economies. Chia noted that while near-term investments are supported by committed orders and strong hyperscaler cash flows, there is greater uncertainty around sustainability in the medium term, with markets looking to commercial revenue growth to justify financing risks. He outlined two potential outcomes: if the boom persists due to accelerating revenue growth and broadening productivity gains, it would affect how central banks assess interest rates; a cut in AI investments could rapidly weaken global growth and cause a swift tightening of global financial conditions. Separately, MAS and the Association of Banks in Singapore announced the AI-Driven Cyber and Technology Risk Taskforce to strengthen collective cyber and technology resilience against risks posed by frontier AI models.