Global investment in artificial intelligence is becoming overly concentrated, raising leverage among technology companies and leading firms while putting pressure on traditional industries. Xiao Yuanqi, vice head of the China National Financial Regulatory Administration, said the resulting crowding-out effect is increasing borrowing costs, weakening traditional companies’ ability to reinvest and expand production, and heightening credit risks. Speaking at the Hong Kong Monetary Authority’s Global Financial Leaders’ Summit in Hong Kong on Tuesday, he urged policymakers to develop frameworks covering macroeconomic management and the prevention of economic and financial risks linked to AI-driven transformation.