The Bank for International Settlements released its flagship Annual Economic Report 2026, warning that the sustainability of the AI boom is now one of the major pressure points for the global economy. BIS says AI-related investment and productivity expectations helped keep financial conditions favorable, but warns that the capital-expenditure surge could become unsustainable if supply bottlenecks restrain production or if market-leadership competition drives overinvestment.
The Bank for International Settlements released its flagship Annual Economic Report 2026, warning that the sustainability of the AI boom is now one of the major pressure points for the global economy.
It also flags rising leverage and complex AI supply-chain financing as emerging financial-vulnerability channels.
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Bank for International Settlements
A review of evidence across cognitive science, education, medicine, and human-factors research finds that fully offloading mental work to AI can weaken the acquisition and retention of the specific skills people stop practicing. The authors distinguish that evidence from broader claims about declining intelligence: effects on foundational abilities such as attention and working memory remain uncertain, while AI used as a collaborator, tutor, or source of feedback can preserve or improve learning.
In a randomized field experiment across a chain of middle and high schools in Turkey, giving teachers a generative-AI support tool reduced students’ intrinsic motivation by 0.11 standard deviations. Average academic performance did not change, but students taught by lower-performing teachers experienced significant declines in both performance and confidence, showing that a tool that makes lesson preparation easier for teachers does not automatically improve the student experience.
The European Commission has issued operational guidance for Article 50 of the AI Act before its transparency obligations begin applying on August 2, 2026. Providers must disclose when people are interacting with systems such as chatbots, agents, or avatars and make generative outputs detectable through machine-readable marking; deployers must disclose emotion-recognition or biometric-categorization uses and clearly label deepfakes and certain AI-generated public-interest text when it lacks human review or editorial control.