AI Weekly Issue #513: Treasury analysts called AI a systemic risk. Treasury disowned it.

Treasury analysts initially flagged AI as a systemic risk, suggesting that its downturn could severely impact stocks, private credit, data-center debt, and utilities. However, the Treasury Department later distanced itself from these claims. The European Central Bank and the UK have taken steps to regulate major tech firms, viewing AI's potential impact seriously. This situation underscores growing concerns about AI's influence on global financial stability and the urgent need for regulatory frameworks to mitigate its risks.