In its annual Financial Stability Review, the Monetary Authority of Singapore has flagged that current stock market valuations are notably high, with a particular concentration in the technology and artificial intelligence (AI) sectors. The stock market's ascent has largely been fueled by a surge in AI-related investments, thereby exposing investors to considerable risks within the IT sector. Some tech giants have expanded their operations through novel private financing mechanisms, which may mask their actual leverage levels and heighten their reliance on capital. Certain AI firms are under pressure to generate adequate revenue to meet their debt obligations. Should market optimism regarding AI's future earnings potential diminish, it could precipitate a significant stock market correction and a wave of defaults in the private credit market. The buildup of leverage will further amplify risks and potentially hinder economic growth. Financial institutions are now acutely aware of the potential risks associated with AI. Similar apprehensions have also been voiced by the Financial Policy Committee of the Bank of England and the President of the International Monetary Fund.