Signage on a fence at the Nscale data center project in Barstow, Texas, October 15, 2026.
Eli Hartman | Bloomberg | Getty Images
Threats related to artificial intelligence top the list of the most significant risks to the financial system, far surpassing any other danger, according to respondents to a Federal Reserve survey released Friday.
The central bank’s biannual review into various dangers saw a rise in respondents saying the biggest danger comes from AI on several fronts, including debt, stock valuations and security risks.
“Respondents noted three distinct areas of concern: (1) high stock valuations and the possibility that lower-than-expected earnings could lead to lower valuations and a market correction; (2) cybersecurity risk, arising from either a malicious attack by sophisticated state actors or damage caused by frontier AI models themselves; and (3) risks associated with complex forms of AI-related financing,” the report said.
The report comes as Wall Street is on the lookout for high-flying AI hyperscalers, while communities are on alert over the rapid spread of data centers used to power the technology. Some 56 percent of voters in this month’s midterm elections said data centers were of crucial or major importance in their choice, according to an exit poll.
Respondents to the Fed survey released Friday include various market participants, economists, analysts and institutional sources. The report covers the period up to October 28, just days before the election.
Of the group, 87% cited AI as a “significant risk” to the system. That’s up from 50% in this year’s spring survey and well ahead of the second most cited danger, a correction in risky assets, mentioned by 52% of respondents.
The other top risks were rising long-term rates (48%), cyberattacks (43%), and fiscal debt sustainability (43%), the latter coming with a U.S. debt of more than $40 trillion and a budget deficit close to $2 trillion.
The report also considers that the system is quite stable, while mentioning that the leverage of hedge funds is at its highest level since 2013 and concentrated on a relatively small group.
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