Treasury initiative to promote AI cybersecurity, risk management

The Treasury Department announced a public-private initiative to strengthen cybersecurity and risk management for artificial intelligence in the financial services sector.

Details: Treasury said that in support of President Donald Trump’s AI Action Plan, this month it will release six resources to enable secure and resilient AI across the U.S. financial system. The resources, which ICBA provided feedback on, address governance, data practices, transparency, fraud, and digital identity.

AI in the Spotlight:

• The Labor Department this week published a framework to guide nationwide AI efforts across workforce and education systems.

• President Trump in December proposed removing state-level AI laws and installing a national standard.

• ICBA in September told Congress that while AI has the potential to help community banks meet regulatory burdens and expand access to credit, thoughtful regulation is needed to ensure innovation does not come at the expense of consumer protection or financial stability.

• Prior to President Trump’s release of an AI Action Plan earlier this year, ICBA told the National Science Foundation that AI has the potential to improve efficiency, strengthen risk management, and enhance customer service, but regulatory frameworks must evolve.

• Recent Independent Banker articles detail ways that community banks can use AI to fight fraud and tips on developing AI policies.