On August 13, the Bank of England conducted an analysis, revealing that if the artificial intelligence (AI) stock bubble were to burst, its ramifications could ripple across to the UK, influencing stock prices, government bond yields, and the corporate credit market. In a blog post, the Bank of England elaborated that should large US tech companies fall short of earnings projections, investors might perceive this as a gloomy forecast for future US productivity and opt to divest from US assets instead of seeking refuge in safe havens. Such a move could result in a depreciation of the US dollar, diminishing its conventional role as a cushion for economies like the UK during periods of financial market stress.

Daniel Ostry and his colleagues from the Bank of England's Global Analysis Division highlighted that if the anticipated productivity gains driven by AI fail to materialize, investors might simultaneously pull out of both the US bond and stock markets. They underscored that this scenario stands in stark contrast to typical stress scenarios, such as the 2008 global financial crisis. During that crisis, investors flocked to safe-haven assets, driving up the value of the US dollar and providing some support to the UK by enhancing its export competitiveness and increasing the pound sterling value of dollar-denominated holdings.