Treasury releases two AI resources

The Treasury Department released the first two of six recently announced resources to guide AI use in the financial sector.

Details: Treasury said:

• The AI Lexicon addresses establishing common definitions for key AI concepts, capabilities, and risk categories, enabling clearer communication across regulatory, technical, legal, and business functions and supporting more consistent supervision and implementation.

• The Financial Services AI Risk Management Framework adapts the NIST AI Risk Management Framework to financial services and provides practical tools and reference materials to help institutions evaluate AI use cases, manage risks across the AI lifecycle, and embed accountability, transparency, and resilience into AI deployment decisions.

Background: Treasury last week announced a public-private initiative to strengthen cybersecurity and risk management for artificial intelligence in the financial services sector. The resources, which ICBA provided feedback on, address governance, data practices, transparency, fraud, and digital identity.

AI in the Spotlight:

• The Labor Department recently 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.

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