Asia on front line of economic risk if AI boom turns to bust: study
2026-10-05
The Business Times
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A report by the Asean+3 Macroeconomic Research Office warns that Southeast Asia, China, Japan, and South Korea are highly vulnerable to economic shocks if the AI boom collapses. The region's central role in AI supply chains and financial markets could amplify impacts such as market selloffs, capital outflows, and reduced technology exports.[AI generated]
Why's our monitor labelling this an incident or hazard?
The article centers on the potential economic consequences of an AI boom turning to bust, which could plausibly lead to significant economic harm through market corrections and trade disruptions. However, no actual harm or incident has occurred yet, and the AI systems themselves are not malfunctioning or misused; rather, the risk is about economic exposure to AI-related markets. This fits the definition of an AI Hazard, as it plausibly could lead to harm but has not yet done so.[AI generated]