ECB's Panetta Warns High AI Valuations Risk Significant Market Corrections

ECB Governing Council member Fabio Panetta cautioned that elevated tech valuations, driven by optimistic AI profitability expectations, could leave markets vulnerable to significant corrections. The statement adds to growing official concern over AI-related asset bubbles, though it is a warning rather than a policy action. Markets may react to increased regulatory or central-bank scrutiny of AI valuations.