AI boom raises ‘too-big-to-fail’ concerns as ecosystem expands, says Kansas Fed's Jeff Schmid

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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.