Bank of Spain governor José Luis Escrivá rejected comparisons between investment in artificial intelligence and earlier financial booms that ended in sharp market falls. Speaking at the World in Progress (WIP) event in Barcelona, he said he was optimistic about the sector and avoided linking it to past bubbles in businesses that were not productive.
Escrivá said AI could improve competitiveness across other industries. He acknowledged that some companies involved in the AI value chain could be affected, but noted that a substantial share of investment is being made with equity rather than borrowed money.
Emmanuel Moulin, governor of the Bank of France, also expressed optimism about AI’s potential, while urging caution over company valuations and financing. He said businesses that initially relied on equity were increasingly turning to debt, leaving them exposed to possible interest-rate rises. Moulin called this a risk to monitor, particularly in Europe, where the sector represents 15% to 20% of the market. A fall in technology stocks could, he warned, spread through European markets. He also raised concerns about AI’s effects on employment, especially for young people.
Former European Central Bank vice-president Luis de Guindos pointed to valuation corrections already affecting companies, citing Anthropic as an example. He said businesses in the sector had plans, but added that an adjustment in valuations would not be unwelcome and was already under way.
The discussion also touched on Pablo Hernández de Cos’s candidacy to lead the ECB following Christine Lagarde’s resignation. Moulin said heads of state could choose between two strong candidates, Hernández de Cos and Dutch central banker Klaas Knot. De Guindos expressed his personal support for Hernández de Cos, saying, “My heart is with Pablo.”
Sources: El País Internacional.