Canadian institutional investors are facing a variety of risks related to the artificial intelligence industry, says Chris Collins, fellow with the Polycrisis Program at the Cascade Institute.

In a new report by the institute, completed alongside the Global Risk Institute, Collins outlined three significant buckets of risk — operational, investment and downstream — for Canadian financial institutions and investors in the current AI environment.

Investment risks are increased by the significant pace of capital expenditure flowing into AI infrastructure, resource constraints that may limit growth and the possibility of an investment bubble given valuation concerns for the companies at the top, the report said.

Read: Global asset owners pursuing alternatives, concerned about AI concentration: survey

However, a bubble environment materializing for AI through the public equity market isn’t yet significantly........

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