The announcement highlighted the launch of Chinese AI firm DeepSeek, which caused significant turmoil in equity markets last week.
DeepSeek’s unexpected emergence as a competitor to established industry giants like Nvidia sent shockwaves through the market. Nvidia, in particular, faced a dramatic setback, suffering the worst single-day decline in Wall Street history as its share price plummeted by 17% in a single session.
DeepSeek’s emergence comes after years of AI-driven market enthusiasm, with major tech firms and investment strategies deeply tied to the trend.
Last week’s selloff underscored AI’s status as a rapidly evolving and volatile sector. The Treasury Committee acknowledged this, stating that DeepSeek’s launch served as a reminder of the market’s unpredictability.
According to figures from the Bank of England, 75% of firms have already integrated AI into their operations, with another 10% planning to adopt it within the next three years.
