Artificial intelligence has emerged as the biggest risk to the financial system according to the Federal Reserve's contacts. 87% of respondents in the latest Fed survey cited AI as a significant risk, up from 50% in spring 2026, driven by elevated stock market valuations, cyberattacks, and the complex financing of AI infrastructure.
The dramatic increase reflects growing concern among bankers, investors and regulators about how the accelerated adoption of generative AI could destabilize financial markets, from algorithmic trading to credit assessment and fraud detection.
The Federal Reserve Bank of New York's survey, released this week, shows that AI-linked risks already outweigh traditional concerns such as inflation, geopolitics and standalone cyberattacks.
For Nvidia and other AI companies, the message is clear: Regulatory scrutiny isn't going to wane. The Fed and IMF are already monitoring the circular financing loop that links chipmakers to data centers and neoclouds.
