Kansas City Fed President Jeff Schmid said the Federal Reserve needs to assess whether the expanding artificial intelligence industry is becoming a too-big-to-fail ecosystem. He pointed to the growing network of companies and contracts tied to AI and the data-center build-out, asking whether its scale and interconnections could create systemic risk. Schmid compared the concern with public bailouts for major financial institutions during the 2007 to 2009 financial crisis, when their size and influence affected the broader economy.