Testifying before the House Subcommittee on Digital Assets, FDIC Director of Risk Management Supervision Ryan Billingsley said regulators should enable banks to adopt technologies such as artificial intelligence as long as these institutions manage associated risks.
Details: Billingsley noted that banks have increasingly used AI and machine learning in a range of areas, including fraud detection, anti-money-laundering and countering-the-financing-of-terrorism processes, and credit underwriting.
More on AI: The Treasury Department recently announced the AI Innovation Series consisting of four roundtables that will bring together financial institutions, technology firms, and regulators to explore AI use cases. President Donald Trump previously published a national AI policy framework with recommendations that he wants Congress to turn into legislation.
ICBA View: ICBA this month recommended to the National Institute of Standards and Technology that any guidance on AI agents should reflect the realities of community banking.
Resources for Community Bankers: Recent Independent Banker articles detail ways that community banks can use AI to fight fraud and tips on developing AI policies.