Aug 4 (Reuters) - Federal Reserve Bank of Kansas City President Jeff Schmid said on Tuesday the financial situation involved in building out the artificial intelligence sector bears watching.

"We have to correlate what's happening in AI, just from a pure scale standpoint, to some of the other experiences we've had that could, in fact, create a systemic problem," Schmid said at a conference at his bank.

"I would argue that there's some signs...that we have to really start to talk about that on a macro level...is this industry becoming another too big to fail?," he added.