Key Takeaways

• An influential economist cautions that today’s AI boom may echo past tech bubbles, raising questions about how society and markets absorb rapid innovation.
• This Press Review for 17 October 2025 explores both the fragility of technological hype and how AI is influencing (and being influenced by) broader societal forces.
• Notizia principale: A leading economist warns that the accelerating AI boom could destabilize the U.S. economy if speculative trends persist.
• Police departments across the nation respond to viral “AI homeless man” prank videos, highlighting concerns regarding the social misuse of emerging technologies.
• Tech giants increase investments in nuclear energy to support AI data center demands, bringing attention to the physical limits and ethical implications of digital progress.
• UNESCO releases draft guidelines for AI in education, emphasizing the importance of human-centric design and societal well-being over a narrow focus on efficiency.
• The relationship between AI and society remains paradoxical, with rapid advancements accompanied by persistent vulnerabilities.

Introduction

A stark warning from a leading economist has drawn attention to the risk that an AI-driven bubble could destabilize the U.S. economy. The Press Review for 17 October 2025 examines this concern within a broader context: societies worldwide are confronting both the promise and the perils of AI, as viral prank videos prompt police alerts and technology firms commit to nuclear power to support their digital ambitions.

Notizia principale: Harvard Economist Warns of AI Investment Bubble

Market Risks Escalate

Harvard economist Dr. Sarah Chen has stated that current AI investment patterns show “dangerous similarities” to the dot-com bubble, pointing to unsustainable valuations and speculative activity in AI-focused venture capital.

Her analysis, published in the quarterly Economic Review, notes a 340% surge in AI startup valuations since 2023, with many firms yet to present viable business models or generate significant revenue.

Institutional investors and major banks have begun adjusting their exposure to AI portfolios. Both Goldman Sachs and Morgan Stanley have issued cautionary notes to clients regarding concentration risk.

Also Today: AI Regulation

EU Framework Takes Shape

The European Parliament’s AI oversight committee has approved the final draft of comprehensive AI governance standards. The measures set guidelines for high-risk applications and introduce mandatory transparency requirements.

EU member states have until March 2026 to incorporate these standards into their national laws. The framework emphasizes algorithmic accountability and data protection.

US Congressional Response

A bipartisan group of senators has introduced legislation to establish federal AI safety guidelines, marking the first concerted effort to set national standards for AI development and deployment in the United States.

Also Today: Education and AI

Universities Adapt Curricula

Leading technical universities are significantly updating their computer science programs, integrating courses on AI ethics and governance with traditional programming education.

The Massachusetts Institute of Technology has announced a new joint degree program, combining computer science with philosophy and ethics, beginning in the fall semester of 2026.

Market Wrap

Tech Sector Adjustment

AI-focused stocks experienced mixed trading as investors reacted to the Harvard economist’s warning. The NASDAQ AI Index declined by 2.3%. Established technology companies with diverse sources of revenue demonstrated resilience.

Semiconductor manufacturers posted moderate gains, with AMD and Nvidia rising 1.2% and 1.5% respectively. Demand for AI infrastructure remains robust despite market uncertainty.

What to Watch

• Global AI Safety Summit in London (23-24 October 2025)
• EU Parliament final vote on AI Act implementation (5 November 2025)
• Q3 earnings reports from major AI companies (12-15 November 2025)
• MIT AI Ethics Conference (18-19 November 2025)

Conclusion

The economist’s warning highlights the volatility shaping the current AI and society landscape. Surging investment enthusiasm, calls for regulatory frameworks, and tangible changes in education and energy infrastructure are emerging simultaneously. Policymakers, investors, and academic leaders are responding proactively to these evolving risks and opportunities.

What to watch: Upcoming global AI summits, key legislative decisions in the EU and US, and pivotal Q3 earnings from leading AI firms.