For this debate, “systemically important institutions” are financial firms (e.g., banks, insurers, designated nonbank financial companies) so large, complex, and interconnected that their distress or failure could materially threaten financial stability.
“Frontier artificial intelligence” refers to the most advanced general-purpose AI models. Frontier AI providers develop or operate such models.
“Financial exposure” means any credit, insurance, derivative, ownership stake, or other money-at-risk claim on a frontier AI provider that would cause an institution financial loss if that provider‘s value or ability to pay falls. It does not include mere use of that provider's tools, services, or infrastructure in day-to-day business (e.g., in-app AI chatbots).