"In spring 2026, 50% of surveyed market participants cited AI as a possible shock, up from 30% in fall 2025. That placed AI among the most-cited risks over the next 12 to 18 months, alongside geopolitical tensions, an oil shock, persistent inflation, and private credit stress."
"The report stated: AI-related risks were in focus as well, particularly concerns around equity valuations, debt-financed capital spending, and risks to the labor market. The survey appears in the Fed's Financial Stability Report, which presents the central bank's current assessment of the U.S. financial system."
"Debt-funded AI spending could increase leverage across companies, lenders, and funding markets. Private credit and labor pressures may widen AI's impact if market expectations weaken. AI's growing presence in the survey reflects broader concern that the technology could affect multiple parts of the financial system, including asset valuations, borrowing levels, labor markets, and credit conditions."
"The Federal Reserve released its latest Financial Stability Report on May 8, showing that artificial intelligence (AI) is emerging as a growing financial-system concern. The Fed said financial stability supports full employment, stable prices, a safe banking system, and an efficient payments system."
Artificial intelligence is identified as a growing financial-system concern, with 50% of surveyed market participants citing AI as a possible shock in spring 2026, up from 30% in fall 2025. AI is among the most-cited risks over the next 12 to 18 months alongside geopolitical tensions, an oil shock, persistent inflation, and private credit stress. The concerns connect AI to equity valuations, debt-financed capital spending, and potential effects on labor markets. Debt-funded AI spending could raise leverage across companies, lenders, and funding markets. Private credit and labor pressures could broaden AI’s impact if market expectations weaken.
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