The Federal Reserve has published the November edition of its Financial Stability Report, and artificial intelligence was the risk most frequently cited by respondents to its survey. The report also flagged high equity valuations, AI-enabled cyberattacks and complex financing structures linked to AI.
Debt tied to AI is growing fast
Issuance of debt linked to advanced information technology exceeded $680 billion as of October 2026, the report states. That compares with $130 billion in full-year 2023. In 2023 such debt accounted for less than 6 percent of investment-grade non-financial corporate debt issuance, while in 2026 the share is roughly 31 percent.
The report estimates outstanding public debt linked to advanced information technology at more than $1.1 trillion as of October 2026. It says the total is hard to measure fully because of significant private credit market activity.
Survey shows rising concern across several risks
Compared with the May survey, AI, rising long-term interest rates and cyberattack concerns showed the largest increases. Respondents also pointed to a correction in risky assets and a further rise in long-term US Treasury yields.
The report assessed cyberattacks and the fiscal sustainability of public debt as having the potential for the most severe consequences.
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Source: Federal Reserve
