TOKYO, October 7. /TASS/. Disappointment over the profitability of major tech companies developing artificial intelligence (AI) technologies could trigger a massive market shock, International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned.

"Given rising economic and financial concentration in AI, we would be wise to remember Amara’s Law, which says we tend to overestimate a new technology in the short run and underestimate it in the long run. It is somewhere in the transition between today’s AI building boom and tomorrow’s arrival of AI’s benefits that we will traverse the period of maximum risk. Strong corporate earnings are driving share prices and wealth effects. Should earnings fall short, however, hyperscaler leverage and large and growing global holdings of U.S. equities could turn a disappointment into a far-reaching shock. Here the first line of defense, of course, is regulation and supervision," she said, speaking in Singapore ahead of the autumn session of the IMF and World Bank governing bodies, which will take place next week in Thailand.