The Federal Reserve says 87% of the contacts it surveyed view artificial intelligence as a significant risk to the financial system, up from 50% six months earlier. Respondents raised concerns about elevated equity valuations, earnings potentially falling short of expectations and cybersecurity weaknesses linked to advanced AI systems. Debt associated with data centers reached $680 billion in October 2026, accounting for nearly one-third of nonfinancial investment-grade corporate debt issuance. Existing and potential commitments tied to AI infrastructure could exceed $3 trillion, raising concerns about financial risk concentration.
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