Norway’s $2.1 trillion sovereign wealth fund identified the convergence of an AI bubble and geopolitical instability as the most significant threats to global markets this month. According to CEO Nicolai Tangen, a bursting AI bubble could wipe out 35 percent of the fund’s value. A severe geopolitical scenario involving global investment restrictions and harsh tariffs could cost up to 37 percent.
The warning came the same week Tangen told Reuters that around half of the fund’s 700 employees already use AI tools in their daily work, from ESG monitoring to contract simulation. The fund has invested millions of kroner in AI infrastructure and says the return has been in the billions, mainly through reduced transaction costs and faster risk analysis. Tangen explicitly ruled out using those efficiency gains to cut headcount, calling AI-driven job elimination “destructive.” His advice to other leaders: do not set job-cut targets when introducing AI. Focus on doing better work, not on having fewer people.
SOURCE: Bloomberg, Gwladys Fouche (Reuters), 18 and 24 March 2026. https://www.bloomberg.com/news/articles/2026-03-18/norway-s-wealth-fund-warns-of-ai-bubble-and-geopolitical-risks
