AI Boom Raises ‘Too-Big-to-Fail’ Concerns as Ecosystem Expands, Says Kansas Fed's Jeff Schmid
12 Articles
12 Articles
The Economic Times
Times of IndiaAI boom raises ‘too-big-to-fail’ concerns as ecosystem expands, says Kansas Fed's Jeff Schmid
Kansas City Federal Reserve President Jeff Schmid has expressed concerns about the interconnectedness of the artificial intelligence industry. He emphasized the need for better understanding of the emerging AI ecosystem and its economic significance. Schmid drew parallels between the AI boom and the financial system before the 2008 crisis. The rapid investment in AI infrastructure raises questions about possible systemic risks.
Fed's Schmid: Need to understand if AI "ecosystem" getting too big to fail
Kansas City Fed's Schmid: Are we moving to a too-big-to-fail AI ecosystem? (TLT:NASDAQ)
"I think where we have started to really synthesize what's happening in the AI and the data center build out is, are we moving to a too-big-to-fail AI ecosystem," said Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City.
The explosive growth of artificial intelligence and the multi-billion dollar investments being made to develop the related infrastructure have begun to raise questions not only about the technological and economic implications of AI, but also about financial stability. At stake is whether the rapid development of a complex network of companies, investors, suppliers and infrastructure around artificial intelligence could, in the event of serious …
Massive investments in the artificial intelligence sector have also come to the attention of the Fed. Kansas City Fed President Jeff Schmid said that it should be examined whether the sector has grown to the point where it would require government intervention in a time of crisis.
Discover more articles in search results Add ot.gr to Google As the rapid development of artificial intelligence progresses, it is important for the Fed to determine whether the network of companies and contracts developing in the industry is becoming so large that it is considered "too big to fail," argues the chairman of the …
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