In a recent update to its Global Risk Outlook, Fitch Ratings sounded the alarm on the mounting financial risks tied to the AI boom. The agency highlighted that the scale of AI-related investment has become so significant that any market correction could pose a serious threat to global credit markets. Notably, U.S. corporate bond issuance surged 26% in the first half of 2026, largely fueled by AI-driven fundraising efforts. Fitch cautioned that the elevated valuations in the tech sector—particularly those tied to AI—are reminiscent of late-1990s dot-com excesses, raising concerns about sustainability and potential spillover effects if investor sentiment shifts. This warning underscores the need for heightened vigilance among regulators and market participants as AI continues to reshape capital flows and risk dynamics.