Fed survey: 87% of respondents flag AI as top financial stability risk

Cointime reports: The Federal Reserve’s semiannual Financial Stability Report, released Friday, found 87% of survey respondents named artificial intelligence a “significant risk” to the financial system, up from 50% in the spring survey and well ahead of the second-ranked concern, a pullback in risk assets at 52%. Respondents cited high AI-linked equity valuations, cybersecurity risks from frontier AI models and complex AI-related financing. The report also noted hedge fund leverage is at its highest level since 2013.