US Bank Regulators Increase Oversight of AI Use: Reuters

US banking regulators are increasing oversight over AI use in the financial services sector, Reuters reports, citing people familiar the matter.

• The Office of the Comptroller of the Currency and the Federal Reserve have started to ask banks to map out how they use AI in higher-risk areas such as lending, know-your-customer checks and sanctions screening, the people said
  • Also probing governance frameworks, including guardrails and human oversight, third-party risk and vendor oversight, subcontractor exposure and contingency plans in case of failures
  • Lenders are being asked to show what controls they have in place, including ⁠guardrails that limit how models ...