Fed's Schmid questions if AI ecosystem is "too-big-to-fail" By Investing.com
2026-09-25
Investing.com
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Kansas City Federal Reserve President Jeff Schmid warned that the rapid growth and interconnectedness of the artificial intelligence industry could create a 'too-big-to-fail' ecosystem. He urged the Federal Reserve to closely monitor and understand the AI sector's systemic economic risks, drawing parallels to the 2008 financial crisis.[AI generated]
Why's our monitor labelling this an incident or hazard?
The article does not report any realized harm or incident caused by AI systems. Instead, it highlights a concern about the potential systemic risk and the need for assessment and understanding of the AI industry's scale and influence. This fits the definition of an AI Hazard, as it plausibly could lead to significant harm in the future if the AI ecosystem's failure impacts the broader economy, but no direct or indirect harm has yet materialized.[AI generated]