AI tops the Fed's financial-stability risk survey, and the Fed tallies the data center debt behind it

Key points The Fed's market contacts rank AI as the top financial risk The Fed tallies tech companies' borrowing for data centers Why the Fed says Big Tech's exposure runs past its debt The Federal Reserve's Financial Stability Report, released on Friday, Nov. 13, has a short survey box near the back, and it's the part I went to first. This time AI sits at the top of it. Staff at the New York Fed asked 23 market contacts at banks, broker-dealers, investment funds, and advisory firms about risks to US financial stability in September and October. AI was the risk they cited most. The Fed shows the percentages only in a chart, and by our reading of it, about 20 of the 23 contacts, or roughly 87%, named AI. In the spring survey of 20 contacts, AI was cited by half of them, behind geopolitical risks and an oil shock. The Fed says the survey summarizes what respondents told it and shouldn't be read as the view of the Fed or the New York Fed. What did the Fed's contacts say about AI?

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