AI fears trigger $1.1 trillion global market sell-off

ISLAMABAD: The growing speculation about artificial intelligence has caused severe volatility in global financial markets, as a result of which gold and silver could not maintain their recent gains. According to research, the total value of the global market decreased by about $ 1.1 trillion in just twelve hours.

According to economists, investors are currently feeling uneasy because the rapidly increasing impact of artificial intelligence is being considered a potential threat to jobs, corporate profits and global economic stability. An analysis released on the social networking website “X” said that artificial intelligence is now being seen not only as a productivity-enhancing technology but also as a comprehensive economic shock.

Market circles say that unlike past technological developments, artificial intelligence is simultaneously bringing about changes in many areas, especially in office and mental tasks such as programming, research and system automation. In this context, an unusual decline was seen in the stock markets after the launch of new products.

On several occasions this year, significant improvements in artificial intelligence tools have been followed by a global sell-off in companies that could be affected by automated systems. The process has wiped trillions of dollars off the combined market value of major companies, including those in emerging Asian economies.

The link between the rise of artificial intelligence and precious metals prices is still unclear, analysts say, but global financial institutions are closely monitoring the potential link.