Artificial intelligence topped the Federal Reserve’s survey of salient risks in its November Financial Stability Report, cited by 87 percent of the 23 market contacts surveyed in September and October, up from 50 percent in the spring survey. Respondents named three AI concerns: elevated equity valuations that could fall if earnings disappoint, cybersecurity risk from state actors or from frontier AI models themselves, and risks in complex forms of AI related financing. The next most cited risks were a correction in risk assets at 52 percent, higher long term rates at 48 percent, and cyberattacks and fiscal debt sustainability at 43 percent each, with the report also noting that hedge fund leverage reached its highest level since 2013 and stayed concentrated in the largest funds.
AI risks top Fed financial stability survey at 87 percent
Artificial intelligence was the most cited risk in the Federal Reserve's November financial stability survey, named by 87 percent of market contacts, up from 50 percent in the spring survey.
Why it matters: The jump puts AI valuations, AI enabled cyber risk and complex AI financing at the top of the risk list the Fed's market contacts watch, ahead of a correction in risk assets and higher long term rates.
Data as of Federal Reserve Board, Financial Stability Report, November 2026, read in full from federalreserve.gov in this run; the report reflects information available as of October 28, 2026, and its survey box summarises 23 market contacts surveyed by Federal Reserve Bank of New York staff in September and October 2026, views the report says are the respondents' own, not the Board's.
Sources
- Financial Stability Report, November 2026, Box 5.1, Survey of Salient Risks to Financial Stability - Federal Reserve Board - 2026-11-13