EL7.AI
Central BanksMedium•5 October 2026•
1 min read

BOJ's Uchida Warns of Market Correction Risk Amid AI Demand Shock

Key Facts

1BOJ Deputy Governor Shinichi Uchida described AI as a positive demand shock that is lifting prices and putting pressure on the economy.
2Uchida warned of a potential market correction risk if the expected profits from AI investments do not materialize.
3The central bank noted that AI-related bond issuance is contributing to pushing up long-term bond yields.

BOJ Deputy Governor Shinichi Uchida described AI as a positive demand shock that is lifting prices and putting pressure on the economy. InvestingLive reported that Uchida warned of a potential market correction risk if the expected profits from AI investments do not materialize, noting that the technology has become a key topic in the central bank's policy meetings.

The central bank noted that AI-related bond issuance is contributing to pushing up long-term bond yields, impacting core monetary policy parameters such as the output gap and the neutral interest rate. The BOJ is currently assessing how these investments influence financial conditions, with Uchida stating that AI adoption may have both positive and negative effects on productivity and labor markets.