WASHINGTON - The International Monetary Fund is closely monitoring the sharp volatility in artificial intelligence (AI) share valuations, but it is too early to say whether investors are turning away from the sector for the long term, IMF spokesperson Julie Kozack told a regular press briefing in Washington on Thursday, November 12.

Source: Reuters

Kozack said AI equity valuations remain exposed to a reassessment of the technology's longer-term profitability. "That overall view that we have taken still remains the case," she said, adding that the Fund is watching the impact of the latest developments on equity markets, the economy and financial stability.

Source: Reuters

The questions at the briefing were prompted by a turbulent morning for the sector: Nvidia chief executive Jensen Huang resigned earlier on Thursday, and journalists at the briefing said Nvidia shares had dropped about 14 percent in morning trade. Reporters also asked about pledges by newly elected Democratic governors in the United States to slow data centre development, and whether that political shift could brake AI investment.

Source: IMF (press briefing transcript, Nov 12, 2026)

Kozack said valuations remain elevated overall in some markets and still carry the risk the IMF flagged in its Global Financial Stability Report and at its Annual Meetings: a reassessment of the longer-term profitability of AI and AI investments. She singled out cyber risks among the financial-stability risks the Fund tracks most closely in the sector.

Source: IMF (press briefing transcript, Nov 12, 2026)

Why the IMF is watching AI so closely

At the Fund's Annual Meetings in Bangkok a few weeks ago, AI was one of the dominant topics, Kozack said: the AI investment boom was helping to push up global growth at a time when an energy shock was pushing growth the other way, while members debated future productivity gains and what AI will mean for labour markets. The IMF's Managing Director had already flagged a potential slowdown in AI investment as a risk for the global economy.

Source: IMF (press briefing transcript, Nov 12, 2026)

On the wider economy, Kozack said it was also too early to determine any impact on US inflation pressures from possible shifts in AI investment, based only on what has been seen in the past hours, weeks and days. The US Federal Reserve's policy-setting committee next meets on December 8-9.

Source: Reuters

What happens next

The Fund's leadership takes the AI debate on the road this month: Managing Director Kristalina Georgieva travels to the Philippines for the ASEAN Leaders Summit from November 15 to 17 and then attends the APEC Leaders' Summit in China on November 18 and 19, while the IMF hosts its 14th Statistical Forum on November 18 and 19, focused on how big data and AI are transforming economic measurement. Deputy Managing Director Bo Li is leading the IMF delegation to the COP31 climate summit in Antalya, Turkiye, on November 12 and 13.

Source: IMF (press briefing transcript, Nov 12, 2026)