Fed Official Warns of Potential AI Systemic Risks
Kansas City Fed President Jeff Schmid noted the need to evaluate whether the expanding artificial intelligence industry and its infrastructure are becoming too big to fail. Policymakers must examine potential systemic risks hidden within the growing network of firms and contracts.
Kansas City Fed President Jeff Schmid warned on Thursday afternoon that the artificial intelligence infrastructure boom could create systemic risks resembling the 2007 financial crisis. Policymakers must evaluate whether the growing web of firms and contracts is becoming too big to fail.
