Federal Reserve survey finds AI is now the top financial stability risk

The Federal Reserve has a new top worry, and it isn’t inflation, banks, or the bond market. It’s artificial intelligence.

In its semi-annual Financial Stability Report, released Friday, November 13, 2026, the US central bank said 87% of the contacts it surveyed named AI as a salient risk to the financial system. That made AI the most-cited concern on the list, ahead of every traditional threat.

From side note to headline act

The jump is what stands out. In the May 2026 edition of the same survey, 50% of respondents flagged AI. Six months later, that share climbed to 87%.

The Fed’s respondents aren’t only worried about the technology itself. They are also uneasy about the sheer speed and size of the money flowing into the sector.

Concerns raised in the survey included stretched equity valuations. Respondents also flagged the risk that earnings fail to keep pace with expectations, which could trigger a market correction. Cybersecurity weaknesses tied to advanced AI systems made the list as well.

The debt behind the data centers

The report puts hard numbers on the spending. Debt issuance tied to advanced computing reached $680 billion by October 2026, according to the Fed.

That figure represents nearly one-third of nonfinancial investment-grade corporate debt issuance. Three years earlier, the share was less than 6%.

The bigger number is still to come. The Fed said that debt, guarantees, and leases on AI infrastructure that have not yet commenced could exceed $3 trillion.

The scale has drawn comparisons to the late-1990s broadband investment cycle. That era saw companies pour capital into network capacity ahead of demand.

The rest of the worry list

AI topped the survey, but it had company. A broad correction in risk assets was cited by 52% of respondents.

Elevated long-term interest rates came in at 48%. Respondents also pointed to fiscal sustainability, with US federal debt now exceeding $40 trillion. Cybersecurity threats appeared on the list as well, separate from the AI-specific angle.

The Fed is not alone in this assessment. The International Monetary Fund’s October 2026 report raised similar alarms about risks linked to AI-driven market dynamics.

What this means for markets and regulators

For investors, the concern is concentration. When nearly a third of high-grade corporate borrowing ties back to one theme, that theme’s fortunes start to ripple through credit markets, not just equity markets.

The next report, due in roughly another six months, will show whether that concern keeps rising or starts to ease. Key items to watch before then include the pace of new AI-linked debt issuance and whether that $3 trillion in potential commitments starts converting into actual obligations.