Fed Report: 87% of Respondents See AI as a Major Risk to the Financial System

Nov. 14 — According to CNBC, the Federal Reserve released its semiannual Financial Stability Report on Friday. A survey included in the report shows that 87% of respondents listed artificial intelligence as a "significant risk" to the financial system, up from 50% in this spring's survey and far above the second-ranked risk, a pullback in risk assets (52%). Respondents were mainly concerned about elevated AI-related equity valuations, cybersecurity risks posed by frontier AI models, and complex AI-related financing. The report also noted that hedge fund leverage is at its highest level since 2013.