US Federal Reserve highlights AI risks and benefits in the banking system
Regulators urged to ensure responsible AI use.
A US Federal Reserve speech highlights the growing role of AI and emerging technologies in the banking sector and notes that they introduce new risks alongside potential benefits. The remarks stress the need for regulators to closely monitor these developments.
The speech notes that AI could affect areas such as risk management, decision-making and operational processes within financial institutions. It emphasises that rapid adoption may outpace existing oversight frameworks.
Officials said supervision and governance are important to ensure AI is used responsibly. Banks are expected to manage risks effectively while maintaining transparency and accountability in their use of technology.
The Federal Reserve said adapting regulatory approaches will be essential to address technological change while preserving financial stability. The speech was delivered as part of policy discussions in the US.
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