When the AI Bubble Bursts, What Happens to Pharmacovigilance?

The AI boom has attracted trillions in investments, but growing concerns about debt, profitability and unsustainable spending are raising an uncomfortable question: what happens if the AI bubble bursts? For PV professionals increasingly reliant on AI-powered systems, the consequences could extend beyond financial markets, and many market analysts seem to see the AI bubble as more of a question of when rather than if it will burst.

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Technology giant Oracle serves as a concerning example. According to Reuters, the company had accumulated $129.5 billion in debt by June 2026, alongside $260 billion in long-term data centre lease commitments. Its aggressive leveraged investment strategy has led to its credit being downgraded to BBB–, just one level above junk status.

Oracle is also invested in drug safety. Its Argus safety platform supports adverse event processing, safety data management and regulatory reporting. They recently announced a partnership with Wipro to strengthen AI-powered PV services using its cloud-based Argus business services model. Clearly there is an increasingly interconnected relationship between PV operations and the technology companies whose financial fortunes are tied to the wider AI economy.

The concerns extend beyond Oracle. Broadcom CEO Hock Tan, when questioned on whether companies were generating meaningful returns from their AI investments, warned that “most companies out there cannot find any return on investment”.

So what happens if the bubble bursts? While a collapse in AI valuations would not instantly disrupt PV, a prolonged investment downturn could have more serious consequences. Reduced funding could force smaller AI vendors to scale back development, increase prices or cease operations. PV companies relying on these vendors may have their automation projects disrupted, lack technical support or face unexpected costs to replace systems. More seriously, financial distress affecting providers of safety infrastructure could create business continuity, data accessibility and regulatory compliance challenges.

The irony is that AI promises to help pharmacovigilance anticipate and manage risks, yet the AI industry’s reliance on debt and speculation may have introduced a brand-new risk that PV companies must carefully monitor. AI isn’t going anywhere; the dotcom bubble didn’t delete the internet. But perhaps it is now worth considering not just the practical benefits of an AI system, but the financial sustainability of its provider.