On June 11, 2026, Senator Elizabeth Warren (D-MA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs and Senator Richard Blumenthal (D-CT) introduced the AI Bubble Transparency Act with the goal of directing the Office of Financial Research (“OFR”) to collect data from financial companies on their AI-related exposures. The bill is endorsed by Americans for Financial Reform (AFR).

The AI Bubble Transparency Act would require OFR to collect data from financial companies (e.g., banks, insurers, funds) and report to Congress their exposure to debt and equity instruments connected to companies that support artificial intelligence hardware and physical infrastructure, although certain smaller financial companies may be exempted.  The proposed legislation specifically lists exposure to chip makers and data centers, neocloud providers and hyperscalers, model originators and developers and data infrastructure as sectors subject to the reporting requirement.

In addition, the AI Bubble Transparency Act directs the Financial Stability Oversight Council (“FSOC”) to issue a public report on the findings of the data collected.  Information in the public report would include data that evaluates the breadth of the financial system’s direct and indirect exposure to AI-related debt and equity instruments and the transmission channels through which an AI-driven shock could threaten the stability of the U.S. financial system.

FSOC would also be required to use the collected data to issue recommendations to financial regulatory agencies and Congress aimed at mitigating AI-driven financial stability risks.

Please contact James Delaney ([email protected]) with any questions regarding the AI Bubble Transparency Act.