Three top US regulators, including the Federal Reserve, are questioning banks about how they use advanced AI models, Reuters reported on 13 October, citing people familiar with the matter.
The questions cover the use of China-developed technology, AI agents in cybersecurity, and whether banks can keep control of autonomous systems. The other two regulators were not named in the report.
The scrutiny follows a gap in the rulebook. The federal banking agencies’ joint model-risk guidance, updated in April, left out generative and agentic AI, calling them novel and fast-moving, and the agencies said they would issue a separate request for information on banks’ AI use. No date has been given for it. In Europe, the Bank of England and the European Central Bank are urging banks to strengthen recovery plans in case AI disrupts markets sooner than expected.
Nothing here is a new rule yet. It does show supervisors treating AI agents as a live risk rather than a future one.
Read the report: Banking Regulators Tighten Oversight of Possible AI Risks (PYMNTS)