Singapore Warns Faltering AI Boom Could Raise Economic, Cyber Risks

The global artificial intelligence boom has become a major driver of technology spending, corporate valuations and expectations for productivity-led growth. The Monetary Authority of Singapore, or MAS, warned that a slowdown or stall in AI development could weaken investment and cloud the economic outlook, posing particular uncertainty for Singapore because of its exposure to global trade and financial markets.

In its latest warning, MAS highlighted risks on two fronts: softer momentum in the AI boom could weigh on global demand and growth, while increasingly capable AI models may enable more sophisticated cyberattacks. The central bank also flagged quantum computing as an emerging threat to existing encryption and cybersecurity defenses. The available report summary did not specify a publication date, projected economic impact or monetary loss estimate.