Fed's Financial Stability Report Names AI Top Risk as 87% of Market Contacts Flag It

The Federal Reserve's semi-annual Financial Stability Report, released Nov 13, named AI as the top risk to the financial system — cited by 87% of market contacts, up from 50% in spring 2026. The Fed flagged three AI-related concerns: elevated equity valuations tied to 'super intelligence' enthusiasm, cybersecurity risk from state actors and frontier models themselves, and complex AI-related financing. Outstanding public debt tied to advanced computing is now estimated above $1.1T.